Payment giant Mastercard announced that it is preparing to allow multiple cryptocurrencies to move directly through its network. Customers, merchants and businesses will no longer need to convert cryptocurrency to legal tender to transfer via the MasterCard network.
Mastercard is ready to let cryptocurrency move in its network
Mastercard announced Wednesday that it will begin “introducing encryption technology to its network.” In a blog post on the company’s official website, Raj Dhamodharan, Executive Vice President of Digital Assets and Blockchain, explained: “Digital assets are becoming a more important part of the payment field.” He pointed out that customers are using MasterCard to purchase cryptocurrencies, especially During the Bitcoin bull market, he elaborated:
We are now preparing for the future of encryption and payment, announcing that this year MasterCard will begin supporting selected cryptocurrencies directly on our network. This is a huge change and requires a lot of work.
The executive emphasized: “We will consider the assets we support based on the principles of digital currency.” He added that the same standards apply to stablecoins. He said: “We are here to enable customers, merchants and businesses to realize digital value.”
Dhamodharan pointed out that Mastercard is involved in many encryption projects and last year worked with Wirex and Bitpay to create an encrypted card that allows people to use its encrypted currency for transactions. Then, the company partnered with the cryptocurrency exchange LVL this year. He said: “These relationships (and many more planned relationships) are based on our years of encryption cooperation.”
Although Mastercard is involved in many encryption projects, Dhamodharan said: “Cryptocurrencies still will not move in our network. Our encryption partners convert their digital assets at the end into traditional currencies and then transfer them to the MasterCard network. He continued:
Our changes to directly support digital assets will allow more merchants to accept cryptocurrencies-this ability is currently limited by the proprietary methods unique to each digital asset. This change will also eliminate the inefficiency problem, so that consumers and merchants do not have to switch back and forth between cryptocurrencies and traditional currencies. [fiat currencies] Make a purchase.
Finally, Dhamodharan said that his company is “actively participating” in several major central banks around the world when exploring central bank digital currencies (CBDC). He pointed out: “Last year, we created a test platform for these banks to use these currencies in a simulated environment.” He added that MasterCard already has “one of the largest blockchain patent portfolios in the payment industry that can enable these The project was successful.”
Bitcoin bull Mike Novogratz said in a comment on the Mastercard news: “Mastercard news is huge. A few months ago, the cryptocurrency community will focus on all work in the next month. Now we have received a lot of good news, It hardly attracted attention. I repeat. This is big news. Encryption adoption is here.”
Recently, Mad Money host Jim Cramer stated that MasterCard, Paypal and Elon Musk’s Tesla are bringing more bitcoin into Mainstream. Tesla revealed on Monday that it has invested $1.5 billion in Bitcoin.
What do you think about MasterCard supporting cryptocurrency directly on its network? Let us know in the comments section below.
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