MasterCard has released a report announcing plans that it will be supporting cryptocurrencies within the year. The payments platform will allow its users to use and transact cryptocurrency at more than 30 million merchants across the world. MasterCard explained that this support might open up the market to new customers as well as building a loyal base of its current customers who are looking to transact using digital assets instead of national tender.
As in the report, the payments platform won’t be urging any users to start using cryptocurrency, but will be there to support those who intend to migrate to digital assets:
“It’s about choice. MasterCard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value.”
Which cryptocurrencies will MasterCard support?
The payments giant added that not all cryptocurrencies will be available on the network. Those assets which are able to align with regulations and offer reliable tender will be supported by the platform, but ones which do not meet the requirements will not:
“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.”
The criteria which assets will need to fulfil will be under the following:
- Robust consumer protections including consumer privacy and security,
- Strict KYC compliance,
- Adherence to local laws and regulations, and
- Stability as a means of payment.
MasterCard’s partnership with blockchain firms
MasterCard continued to explain that it will not be moving the cryptocurrencies through its network. Instead, it will be relying on cryptocurrency partners to make conversions to ensure transactions occur securely. These partners include Wirex and BitPay, both of which MasterCard partnered up with last year. The payments platform has also introduced LVL to the mix as an exchange platform.
“[Cryptocurrencies] still don’t move through our network. Our crypto partners convert the digital assets on their end to traditional currencies, then transmit them through to the Mastercard network.”