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Mastercard to support cryptocurrencies directly on its network in 2021

Mastercard to support cryptocurrencies directly on its network in 2021

Payments giant Mastercard intends to support cryptocurrencies in 2021. It is paving the way for its approximately one billion users to spend digital assets by exposing them to 30 million merchants. Mastercard Inc has announced that it will commence allowing cardholders to transact some cryptocurrencies on its network this year. Accordingly, the credit card giant will accompany a range of significant companies that have proclaimed such similar support.

Nevertheless, Mastercard has explained that it would not support all cryptocurrencies on its network. It further opined that various virtual currencies in circulation still need to stiffen their compliance measures. Multiple cryptocurrencies have fought to sustain the general public and mainstream investors’ support because of their risky nature and money laundering potential. 

Mastercard lays down criteria for assessing prospective cryptocurrencies

Mastercard has laid down four core criteria’s by which it will be evaluating prospective assets. The requirements involve robust consumer protections, including consumer privacy and security, strict KYC compliance, adherence to local laws and regulations, and stability as a means of payment. Mastercard already operates in association with crypto payment firms like BitPay and Wirex for cryptocurrency debit cards. However, today’s statement designates a transformation to offer cryptocurrencies by their network directly.

The decision to support crypto occurs a few days after Elon Musk’s Tesla disclosed that it had acquired $1.5 billion worth of Bitcoin and would accept the cryptocurrency as a payment form. Mastercard’s statement also listed the growing demand for digital assets amongst its consumers. Multiple users have been purchasing crypto assets with their Mastercard amid the prevailing bull market. 

Mastercard contemplated leveraging the application of blockchain technology. For instance, it filed more than 80 blockchain patents to describe further how companies could employ blockchain technology or manage cryptocurrencies. In September last year, the company revealed interest in stablecoins when it commenced a platform for central banks to test the use case of their CBDCs.

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