A new age. Mastercard has announced that it will begin facilitating cryptocurrency transactions on its payment networks this year, though the firm is yet to disclose which cryptocurrencies.
Fair bet that only the major ones will make the cut.
The financial transaction processing company shared the initial details in its announcement, which is yet another step in legitimizing cryptocurrency and the technology that powers it. These digital currencies are becoming increasingly accepted as a form of payment, and Mastercard is ready to join in the trend.
This move from Mastercard will make it easier for people to transact using these secure digital currencies.
That said, the company has put forth some strict requirements that cryptocurrencies must meet in order to be included on its platform. And this has led some experts to question the feasibility of the implementation.
For example, Mastercard says that for a cryptocurrency to be included, it must:
- Provide strong consumer protection, with privacy and security of user information and transaction data being paramount.
- Allow all stakeholders like merchants, mobile network operators, and financial institutions the ability to contribute to and benefit from their blockchain network.
- Operate in compliance with applicable laws and regulations, including anti-money laundering.
It is not yet clear whether any of the existing cryptocurrencies can meet all three of these requirements due to their very nature. Maintaining the decentralization of cryptocurrencies in a regulatory environment is a challenge, after all.
Nevertheless, this new development from Mastercard will make it easier for people to conduct transactions using these secure digital currencies.
The company has tracked cryptocurrency usage on its network for a while now, as people used their Mastercard debit cards to purchase crypto assets over the years. This official facilitation later in 2021 is only a logical next step.
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