Mastercard to Start Cryptocurrency Transactions

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Mastercard, the leading global payments and technology company has decided to partner with cryptocurrency firms allowing its cardholders to transact using certain cryptocurrencies. The firm will not encourage all of today’s cryptocurrencies in its network as many of them still lacks compliance measures. Instead, Mastercard will give more priority to ‘stable coins’ or cryptocurrencies that are associated with fiat currencies like the dollar. It has already entered into associations with some of the biggest cryptocurrency firms including Bitpay and Wirex, for enabling transactions through cryptocurrencies on its network. Foreseeing the future of crypto and payments, Mastercard is now preparing itself by supporting and allowing selected cryptocurrencies directly on its network. Intending to launch new digital currencies, Mastercard is actively engaging with the central banks around the world. Mastercard already permits the cardholder to spend digital assets through external platforms, but the transactions were not through its network. But the company now intends to assists the crypto partners by permitting more merchants to accept the digital tokens. In a blog post, Raj Dhamodharan executive vice president of digital asset and blockchain products and partnerships informed that the company focuses on consumer protection and compliance with its plan. Mastercard’s decision to support digital assets will be an impetus to other merchants in the market to accept and adopt crypto. He also added that Mastercard’s decision is not a recommendation for its cardholders to start using the cryptocurrencies and therefore, it is the customer’s choice to move onto cryptocurrencies. Currently, cryptocurrencies are viewed as a limited ability by proprietary methods that are unique to each digital asset. The change to cryptocurrencies will allow both the merchants and consumers to cut out inefficiencies related to purchasing by avoiding the need to convert back and forth between crypto and that of traditional methods. Mastercard’s decision has sent the cryptocurrencies to a record high, as its announcement was made after Tesla Inc, the electric automobile giants revealed last week that it has invested $1.5 billion in Bitcoin. With its new move to cryptocurrencies, Mastercard aims at capacitating customers, merchants, and businesses to move towards digital values. Mastercard hopes to begin the cryptocurrency transaction on its network later this year.

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