Mastercard To Begin Allowing Certain Cryptocurrencies On Its Network
The digital asset boom has been intensifying recently, as a number of financial platforms have opted to allow customers to conduct transactions using cryptocurrencies.
Back in October, Paypal announced that it would allow its American users to make transactions via a number of cryptocurrencies including Bitcoin, Litecoin, and Ethereum, in a bid to align itself with the digital currency boom. Now however, it appears that Mastercard has become the latest company to also embrace the trend, announcing that it will begin allowing cardholders to make transactions using certain digital currencies.
On Wednesday, Mastercard announced in a blog post that it is currently in talks with a number of central banks around the world regarding their plans to launch digital currencies, with the hopes of eventually onboarding those digital assets to its platform sometime this year. However, Mastercard did note that it will prioritize consumer protection and compliance measures, meaning that not all cryptocurrencies will be supported on its network.
Mastercard already has several partnerships with major cryptocurrency companies, including BitPay and Wirex, but the credit card company has always required digital currencies be transformed to fiat currencies using a different network. “Our change to supporting digital assets directly will allow many more merchants to accept crypto — an ability that’s currently limited by proprietary methods unique to each digital asset,” said Mastercard executive vice president of digital asset and blockchain products and partnerships Raj Dhamodharan.
Mastercard’s announcement came shortly after Tesla revealed its $1.5 billion Bitcoin purchase earlier this week, causing the cryptocurrency to skyrocket to new highs. Mastercard’s rival, Visa, has also said it will consider introducing cryptocurrencies to its platform in the event that digital assets become a recognized means of exchange.
Information for this briefing was found via Mastercard and Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.