Mastercard to work with crypto platforms to allow trade in digital assets

Mastercard to work with crypto platforms to allow trade in digital assets

American financial services company- Mastercard has reportedly announced that it will allow the merchants to accept certain cryptocurrencies on its network by the second half of 2021, marking one of the largest support towards digital assets by a conventional payment platform.

According to Raj Dhamodharan, Executive Vice President for Digital Assets at Mastercard, the company is aiming at allowing merchants, customers, and businesses to move digital value which may be in the traditional or crypto form, as required.

Mastercard currently works with some cryptocurrency platforms that provide a Mastercard card to the user and allow them to spend their digital assets, however, the cryptocurrencies don’t flow through their network since crypto partners first convert the digital money to the traditional form and then transmit them to Mastercard.

Dhamodharan added that by directly supporting some digital assets, Mastercard will remove the inefficiencies, letting both merchants and customers avoid frequent conversion between crypto and conventional payment modes to facilitate purchases.

For the record, Mastercard will be highly selective about the cryptocurrencies it will embark on the proposed plan with. The financial services company is looking for cryptocurrencies that ensure the privacy of consumer information, follow compliance procedures and offer reliability.

Notably, the growing popularity of cryptocurrency has encouraged fintech companies to experiment with digital assets. Mastercard had earlier announced that it was under discussions with central banks regarding the possibility of “central bank digital currencies” which would be a viable alternative to pay before the flat currency.

Commenting on the company’s latest earnings, Michael Miebach, CEO, Mastercard, mentioned that the latest announcement to include digital assets on the platform will be done while emphasizing consumer protection and transparency, along with its acceptance network which could be useful to central banks as they are considering the adoption of future of money.

In other news, notable financial service company, PayPal began allowing its U.S. users to trade in cryptocurrencies from the end of 2020. While Visa has joined hands with certain digital wallets to allow its customers to spend their crypto holdings. 

Source Credit: https://www.marketwatch.com/story/mastercard-to-let-merchants-accept-some-cryptocurrencies-directly-later-this-year-11613010252