Global payments giant Mastercard announced yesterday that it will start supporting cryptocurrencies directly on its network later this year.
The payments giant analyzed aggregate data and found that most of its customers use their cards to purchase digital assets.
Mastercard realized that cryptocurrencies are now becoming a more important component of the payment system, and so they want to offer customers, traders and businesses the option to move digital value the way they want.
“This is a matter of choice. Instead of recommending you to start using cryptocurrencies, MasterCard offers an alternative to enable both customers and businesses to move digital assets. ”
The payment company is currently preparing for the change and is deciding which digital assets will be supported. Many cryptocurrencies will not meet Mastercard’s requirements as they need to tighten their compliance measures. While the company stated that it plans to support stablecoin options thanks to its “reliability and security”, it did not provide information about the cryptocurrencies it will integrate.
Before Mastercard can support it in a digital asset, he explained four criteria to look for: consumer privacy and security, strict Know Your Customer (KYC) compliance, adherence to local laws and regulations, stable pricing to be a payment instrument, and consumer protection. Last but not least, Mastercard must be able to offer the same high standard of consumer protection as credit cards. At the heart of this situation is keeping customer information private and secure.
Mastercard has been involved in many crypto collaborations such as creating cryptocurrency cards for BitPay and Wirex last year and cryptocurrency cards for crypto exchange LVL this year. Also, he is currently working with various governments on the development of central bank digital currencies (CBDCs), and last year launched a testing platform to help banks evaluate CBDCs. The payment company currently owns one of the largest blockchain patent portfolios in the industry, including 89 blockchain patents and 285 pending blockchain applications. It looks like the payments giant is working to be part of the crypto future.