MasterCard has disclosed the ongoing preparations taken for the future of crypto and payments. Later this year, they are hoping to start supporting select cryptocurrencies directly on their network.
This significant change will be requiring a lot of work. A blog post penned by Mastercards digital asset and blockchain VP Raj Dhamodharan says that we will be very thoughtful about which assets we support based on our digital currencies principles, focusing on consumer protection compliance.
MasterCard sees cardholders buying crypto assets. It’s also seeing the use of crypto cards to access these assets and convert them into traditional currencies for using it all over its network, as said by Dhamodharan.
The company believes that progressing work on crypto on its network will make many possibilities for merchants and shoppers. Most of the digital assets in circulation still need to tighten their compliance measures before meeting MasterCard requirements. Yet, not all of the cryptocurrencies will be supported.
The company will need to determine consumer protections before the transaction of cryptocurrency on the MasterCard network. The protection includes security and privacy of consumers’ information strict compliance protocol, including knowing your customer to snuff out illegal activity and deception in the payment network.
The digital assets must follow local laws and regulations in the region where they are being used and ensure the stability of the cryptocurrency.
Last year the MasterCard teamed up with Bitpay and Wirex to make crypto cards that let people transact with their cryptocurrency.
However, in these instances, cryptocurrency does not move through the MasterCard network. Its partners convert the digital assets to traditional currencies and then transfers them through to the MasterCard network.
MasterCard is also working with several major central banks worldwide as they decide to release new digital currencies. In addition to forgoing more crypto exchange partnerships.
Subscribe to our newsletter below and never miss the latest Technology updates.