Mastercard Plans to Support Cryptocurrency Payments in 2021

Mastercard, an American financial services firm, announced that it is planning to support some cryptocurrency assets on its network this year. The company mentioned that digital currencies are becoming an important part of the financial world.

According to an official post by Raj Dhamodharan, EVP Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term and Digital Partnerships at Mastercard, the company will focus on consumer protection and compliance before the selection of cryptocurrency assets. Mastercard has already started working on the integration of selected crypto assets on its network.

Additionally, the financial services provider mentioned that not all Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term will be supported on its network as many of the digital assets require strict compliance. Mastercard partnered with Wirex and BitPay last year to create cryptocurrency cards.

“To be completely clear, not all of today’s cryptocurrencies will be supported on our network. While stablecoins are more regulated and reliable than in the recent past, many of the hundreds of digital assets in circulation still need to tighten their compliance measures, so they won’t meet our requirements. We expect consumers and the ecosystem as a whole will start to rally around the crypto assets that offer reliability and security. It’s those very same stablecoins that we expect to bring into our network,” the official announcement states.

Focus on Consumer Protection

Mastercard mentioned that the company’s primary focus will be on consumer protection. Moreover, the firm is focusing on strict cryptocurrency KYC requirements along with the security of consumers.

“Strict compliance protocols will be needed, including Know Your Customer, a requirement meant to snuff out illegal activity and deception in payment networks. Also, these digital assets must follow local laws and regulations in the regions they are used,” the company added.

Mastercard currently has 89 blockchain patents along with 285 blockchain applications pending approval worldwide. Furthermore, the firm is engaged with several central banks around the world as they review plans to launch new digital currencies (CBDCs) to offer its citizens a new way to pay.