Mastercard says it’s preparing for the future of finance and will directly support cryptocurrencies on its network later this year.
The announcement came in a new blog post, in which executive vice president for digital asset and blockchain products, Raj Dhamodharan, says the company will add support for a group of carefully selected digital assets.
“We will be very thoughtful about which assets we support based on our principles for digital currencies, which focus on consumer protections and compliance.
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 company lists four key requirements for deciding which crypto assets it will support – privacy and security, strict compliance protocols, adherence to local laws and regulations, and stability to use the asset for spending and saving.
“Doing this work will create a lot more possibilities for shoppers and merchants, allowing them to transact in an entirely new form of payment.
This change may open merchants up to new customers who are already flocking to digital assets, and help sellers build loyalty with existing customers who want this additional option. And customers will be able to save, store and send money in new ways.”
The financial services giant has been working on blockchain technology for years and claims it has one of the largest blockchain patent portfolios in the financial services industry, with 89 blockchain patents and 285 patent applications pending.
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