Every person’s opinion on cryptocurrencies varies - from dyed in a wool fanatic to utter skeptic. However, the fact stays the same that these digital assets are becoming an important part of the payment world.
The demand for cryptocurrencies has increased and Mastercard has bared plans to offer support to selected cryptocurrencies on its network this year, thus joining the list of big-ticket firms that have pledged similar support to cryptocurrencies.
This Mastercard-crypto collaboration was announced just a few days following Elon Musk’s Tesla purchased $1.5 billion of bitcoin and would soon accept it as a form of payment.
"We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network," said Raj Dhamodharan, executive vice president of digital asset product of Mastercard.
Various other asset management companies such as BlackRock and payment companies like Square and PayPal have also backed up cryptocurrencies.
Mastercard already offers its customers cards that are known as Mastercard crypto cards that allow people to spend digital assets via external platforms. But this means that the transaction doesn’t go through its network. The company now aims to support crypto partners by allowing many more merchants to accept digital tokens. “This would cut out inefficiencies, letting both consumers and merchants avoid having to convert back and forth between crypto and traditional to make purchases," Dhamodharan added.
The company is “actively engaging” with central banks around the world to possibly launch new digital currencies so people would have a new method to make payments.
“Doing this work will create a lot more possibilities for shoppers and merchants, allowing them to transact in an entirely new form of payment. This change may open merchants up to new customers who are already flocking to digital assets,” Mastercard said.
However, Mastercard specified that not all cryptocurrencies will be supported on its network and it also added that many of the hundreds of digital assets in circulation still need to tighten their compliance measures.
Various cryptocurrencies struggle to win the trust of mainstream investors and the public due to their risky nature and the potential for money laundering.
The company has not yet specified which cryptocurrencies would qualify for use on its network.