True to the famous quote, ‘If you can’t beat them, join them,’ the payment giant MasterCard has sought to start supporting cryptocurrencies in their network. In its initial trials, however, they will only support stablecoins but not cryptocurrencies.
In a blog post, MasterCard’s executive vice president, Raj Dhamodharan, explained noticing a high rate of cryptocurrency purchases made with their cards. MasterCard’s choice on which assets to support will cautiously be made to focus on customer protection and compliance.
MasterCard explains with key discretion that its philosophy on adopting virtual assets is straightforward. To them, it’s all about choice. Users are free to choose their transaction options; MasterCard will only but enable them-however they wish.
What Coins Will MasterCard Support?
MasterCard will not Add Crypto Just Yet, Only Stablecoins. Stablecoins are more regulated and reliable than most digital currencies in circulation today. It is quite a big deal to be supported by a payment giant like MasterCard. Most cryptocurrencies have now been tasked with the duty to make sure they meet MasterCard’s requirements before support.
In order to support any digital currency, MasterCard will have to check for these four fundamentals.
- Customer protections- Security of customers information
- Adherence to strict federal policies like the KYC
- Adherence to local laws and regulations
- People’s willingness to use the asset for payment
Previous MasterCard Efforts to Promote Virtual Currencies
Last year, MasterCard teamed up with BitPay and Wirex and created crypto cards that allow crypto transactions. This year, they have added an upcoming crypto exchange to their team, LVL, to build on future collaborations.
The more partners MasterCard gathers, the better it will be. Here is why.
Cryptocurrencies do not move through MasterCard’s network. Instead, the crypto partners convert the digital currencies on their end to traditional currencies then now transmit them through MasterCard’s network.