Mastercard Inc: The Latest Fintech Company To Encompass Cryptocurrency
Mastercard Inc encompassed cryptocurrencies recently as the latest Fintech company. So, the cardholders will be able to transact in certain cryptocurrencies within 2021.
On Feb 10, in a blog post by Mastercard’s digital asset and blockchain, VP Raj Dhamodharan says,
We are preparing right now for the future of crypto and payments. Mastercard will start supporting select cryptocurrencies directly on our network. It’s a big change that will require a lot of work.
So, surely a great time ahead for those Mastercard users looking for a simple way to transact crypto.
Mastercard Inc Encompassed Cryptocurrency Onto Its Network
Whatever the world’s opinion on cryptocurrencies might be, one thing is obvious to all by now. Digital assets are rapidly becoming a common form of payment all over the world. And by realizing the boom of the crypto world, Mastercard denied keeping crypto out of its network.
We must say, the company indeed has a wise outlook. Including digital assets for the people using the cards to buy crypto assets has proved the earlier statement. It chose the best timing after BTC surged on the historical $1 trillion market cap.
Great step with the best resolution. Right?
Let’s see what the company say,
We are here to enable customers, merchants, and businesses to move digital value — traditional or crypto — however they want. It should be your choice. It’s your money.
Why Is Mastercard Bringing Crypto?
Their main motto is to create more possibilities for users by availing of an entirely new payment form. No doubt, the initiative will also help businesses to attract more customers who use digital assets.
Moreover, sellers can heighten loyalty with existing customers. Also, it will allow customers to save, store, and send money in alternative ways.
The Chemistry Of Fintech Giant & Crypto Assets
Everything seems to be interconnected. You may be wondering how.
Elon Musk recently announced that Tesla had bought $1.5 billion in Bitcoin.
The credit-card giant then announced its acceptance of crypto assets a few days later. Mastercard already offers customers to transact using cryptocurrencies, although without going through its network.
However, the company specified some digital assets like Bitcoin & Ethereum to transact with. So, it won’t randomly support all the cryptocurrencies on its network.
Moreover, a significant question can arise at this stage. What kinds of cryptos were added to the list?
And our next point will go over this subject in depth.
Crypto Assets That Mastercard Add Onto The Network
Unfortunately, not all crypto-assets can transact with Mastercard. To tighten the compliance measure, the company has included four key points of requirement. Only those cryptos will be allowed, which can fulfill these requirements.
Let’s take a quick look at the requirements:
- Consumer rights, such as privacy and data security — the same degree of security that customers have come to expect from their credit cards.
- Strict compliance protocols will be needed.
- These digital assets must follow local laws and regulations in the regions they are used.
- People will want to use these digital assets for payments.
They also mentioned that a crypto asset needs to offer the stability of what people need in an exchange option for spending, not an investment.
Adapting to emerging technology is the most important defense mechanism for any company to survive in the present era. And as a genetic company, Mastercard Inc displayed its great adaptive skills. It has shown its gut to allowing cryptocurrency for the users, and that’s how adapting to the new trend.
Indeed, it’s a great initiative for both the company and the crypto world. Also, it expresses that the company is thinking fast to see the future beforehand.