Regardless of how cryptocurrency is viewed by the rest of the world: a passing trend, volatile, unsecure, the fact remains that this digital currency is poised to secure its place within the payments world.
This is being witnessed within the Mastercard network itself, with more people using their credit cards to purchase crypto assets. Bitcoin’s recent increase in value proves it. More users are also using crypto cards to obtain these assets in order to convert them into fiat currencies for purchases.
Preparing For The Future
As cryptocurrencies shake up the payments ecosystem, Mastercard has announced that it will begin supporting select cryptocurrencies directly on their network. It will not be an easy task. Mastercard has stated on its website that it will make careful considerations to determine which assets they will actually support. It will be wholly based on their principles regarding cryptocurrencies, whose focal point is driven by consumer protection and compliance.
In light of this philosophy, Mastercard has stated that not all of existing cryptocurrencies will be supported by their network. Hundreds of cryptocurrencies that are in current circulation still need to tighten up their compliance measures. As a result, they will not meet Mastercard’s requirements.
They further explain their overall philosophy concerning cryptocurrencies which is pretty forthright. Mastercard emphasizes that it’s about choice and that they are not using their platform to encourage customers to begin using cryptocurrencies. On the contrary, their goal is to help “to move digital value”, whether it be traditional or crypto, for customers, merchants, and businesses.
The Benefits To Be Had
The aim of this endeavor is to create more opportunities for both merchants and shoppers by facilitating this new form of payment. It will benefit merchants as they will be able to tap to a new market of cryptocurrency users.
Sellers can build loyalty with current customers who wish to have this additional payment option. Customers will also benefit as they will be able to save, store, and send money in an entirely new way.
VISA Hops Onboard
Visa, Inc., has also declared its adoption of cryptocurrency by accepting the blockchain startup by the name of GreenBox POS within its Fintech Fast Track Program. This will enable the San Diego-based GreenBox to have full access to the “VisaNet backbone network”. This is to create a “co branded Visa card” to facilitate push-to-card payments.
Looking Ahead
As part of their ongoing efforts to innovate, Mastercard is working with several central banks from around the globe as they work on creating a new digital currency called CBDC, offering their customers a new way to purchase.
Mastercard is driven and inspired by what they see happening in the payments world: within banking, fintechs, and cryptocurrencies as they move forward with change.