Financial services giant Mastercard is planning to introduce crypto support on its network. The organisation unveiled this news through a press release, noting that it intends to begin supporting cryptocurrencies later this year as it prepares for the future of crypto and payments. Mastercard believes this development will enable customers, merchants, and businesses to transfer funds however they want.
Additionally, Mastercard claims this move would help eliminate the difficulty of constantly converting crypto to fiats and vice-versa while making purchases. While the firm identifies the vast potential of cryptocurrencies, it warned that this announcement is not a recommendation to buy crypto.
Measures to shield consumers against crypto-associated risks
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Mastercard will not support all cryptocurrencies that are currently available on the market. Tending to incline towards stablecoins, the company said they are more regulated and reliable. Per Mastercard, most of the digital assets in circulation still have a long way to go, regarding compliance measures. As a result, the firm won’t list them until they meet this requirement. Mastercard expects its users, and its ecosystem at large, to begin adopting cryptocurrencies that offer stability and security. As such, stablecoins are the best candidates for listing.
Even so, Mastercard would focus on four important factors when deciding which coins to list. These are consumer protections, strict compliance protocols, and adherence to laws of jurisdictions in which the coins are used. The final requirement is stability, seeing as the company intends for the cryptocurrencies to serve as means of payment, not investment vehicles.
Mastercard currently has 89 blockchain patents globally. Additionally, it has 285 pending blockchain patent applications. As such, the firm believes it can seamlessly tap into this patent portfolio to make its projects successful.
Apart from working on listing cryptocurrencies, Mastercard is also working with several central banks to help them review plans to launch CBDCs. The organization reportedly developed a platform that lets the central banks test their CBDCs in a simulated environment.
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