As a method of payment, cryptocurrencies are becoming more widely accepted. According to the Mastercard Newsroom, Mastercard will begin facilitating Crypto-Transactions. Some specific cryptocurrencies will be supported on its payment network. However, the applicable cryptocurrencies have yet to be disclosed by the company. This is one of the latest steps in legitimizing cryptocurrencies and the technology that underpins them. This context is a thorough examination of Mastercard’s novel approach to facilitating crypto-related transactions.
What is the reason behind this initiation?
Customer usage of cryptocurrencies, especially, Bitcoin, has been monitored by the company; Mastercard. They discovered that consumers are increasingly using Mastercard debit cards to address crypto-related activities, and crypto cards are increasingly being used on the company’s network. Nowadays, many countries accept cryptocurrency as an investment and payment method. Due to this acceptance around the globe, Mastercard is expected to make it easier for people to use safe digital currencies to do business.
Main considerations for the process
According to the background of Mastercard’s novel step, the community might be able to use the facility within 2021. However, based on Mastercard’s specifications, some experts have questioned the viability of the execution. To be evaluated, cryptocurrencies must meet certain requirements, according to the business. Some of those are:
- Ensuring consumer protection, such as the user’s privacy and security, as well as transaction information
- Allowing all the stakeholders to contribute and benefit from blockchain technology.
- To follow the workflow in accordance with applicable laws and regulations, such as anti-money laundering laws.
According to the foregoing considerations, existing cryptocurrencies face some difficulty in meeting the aforementioned requirements. In a scenario where Mastercard hasn’t specifically mentioned which cryptocurrencies are planned to be added to the network, the announcement can be considered as an open invite for the cryptocurrencies which address the above requirements. However, Mastercard facilitating crypto-transactions might be another chapter of crypto regulation and acceptance.
- The above discussion is neither financial advice nor financial recommendation. It is a basic study on cryptocurrency which is done based on resource sources. Therefore, our team accepts no responsibility or liability for any predictions/decisions you make in the industry.