Mastercard is the latest corporation to join the cryptos bandwagon following previous public interests in digital assets.
The digital payments company says it will begin allowing customers to transact select cryptocurrencies on its network. It’s turning a blind eye on the naysayers about cryptos and betting on the critical role these digital assets are playing primarily in the payment world.
“… the fact remains that these digital assets are becoming a more important part of the payments world,” Raj Dhamodharan, Mastercard’s Executive Vice President, Digital Asset & Blockchain Products & Partnerships, wrote in a blog post.
MasterCard will join the crypto this year. The company will support a few cryptos based on its digital currencies principles, focusing on consumer protection and compliance.
Mastercard says it will support far fewer cryptos than what currently exists. Forget about Bitcoin, though. Mastercard will only support stablecoins – over reliability and regulatory compliance – but warns that many of them are yet to implement tight compliance measures.
“Our philosophy on cryptocurrencies is straightforward: 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 – traditional or crypto – however, they want. It should be your choice; it’s your money.”
Stablecoins to be supported must uphold a customer’s privacy and security, have strict compliance protocols, abide by local laws and regulations, and support payments, according to the company.
Cryptocurrency support on Mastercard’s network will create more commerce opportunities by expanding the forms of payments. Besides, it will also enable Mastercard customers to use the new format to save, store and send money.
Mastercard’s latest crypto-related announcement is not new. Last year MasterCard partnered with Wirex, BitPay, and LVL to create crypto cards allowing customers to transact with their digital currencies. But it’s the first time the company plans to allow crypto to convey them through its payment network.