Mastercard wants to open its own payment network for cryptocurrencies in 2021. However, the credit card provider only wants to allow crypto currencies that offer a certain stability and are therefore also suitable as a means of payment. In addition, all cryptocurrencies approved by Mastercard must comply with the laws applicable in the respective area of use.
“First and foremost, we need Consumer protection, including data protection and the security of consumer data – the same level of security that people expect from their credit cards, ”explains Mastercards Blockchain Vice President Raj Dhamodharan. He expects consumers and the ecosystem to concentrate primarily on so-called stablecoins in the long term, which is exactly what they want to allow as a means of payment.
Stablecoins are cryptocurrencies that have a lower volatility than other digital currencies due to an automated or actively controlled monetary policy. An example of this would be cryptocurrencies linked to the US dollar such as Tether and USDC or the DGX linked to gold.
Mastercard: crypto engagement will be expanded significantly
Mastercard has been involved in various crypto projects in the past few years. In cooperation with various partner companies, the company offered credit cards with which cryptocurrency owners could pay directly in the store. However, the cryptocurrencies were exchanged for classic currencies with every transaction.
However, if the Mastercard network directly cryptocurrencies supported as a means of payment, this exchange is not applicable. “Our move to direct support for digital assets will enable many more merchants to accept cryptocurrencies,” said Dhamodharan.
Visa had already announced at the beginning of February 2021 that it would support cryptocurrencies in the future. The Mastercard competitor wants to provide banks with a software interface that can be used to integrate payments with crypto currencies into their own offer. Visa also wants to start the corresponding offer this year.
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