Report said that MasterCard will allow its almost one billion users to spend cryptocurrencies at more than 30 million merchants.
It has been reported that the firm believes this may open merchants up to new customers and build loyalty with existing customers who are already migrating to digital assets over traditional fiat options.
The report said:
“It’s about choice. MasterCard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value.”
However, Mastercard noted that it is planning to support stablecoins due to their “reliability and security.”
The report said that the global payments giant offered four core criteria by which it will be assessing prospective assets: robust consumer protections including consumer privacy and security, strict KYC compliance, adherence to local laws and regulations, and stability as a means of payment.
Big news coming from @MasterCard this week! They plan on supporting cryptocurrencies in 2021 and this will give their nearly one billion users the option to use fiat or digital currency. https://t.co/nIu6jZEgDX — Cointelegraph (@Cointelegraph) February 11, 2021
Also, MasterCard noted that it is “actively engaging with several major central banks around the world” to support central bank digital currency initiatives (CBDCs). Last year, the firm released a “virtual sandbox” tool to demonstrate how a CBDC can be used to settle consumer purchases using MasterCard’s infrastructure.
The announcement also reported increasing demand for digital assets among its customers by noting that many users have been buying crypto assets with their Mastercards amidst the current bull market.
It stated:
“Digital assets are becoming a more important part of the payments world. 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.”
Likewise, MasterCard already devoted significant resources to exploring distributed ledger technology, with the company currently holding 89 blockchain patents while a further 285 applications are pending.
Thus, the payments provider has engaged in crypto payments for some time now, partnering with Wirex and BitPay to create crypto cards, although no cryptocurrencies moved through MasterCard’s network.
Source: Cointelegraph