American payment giant Mastercard has announced that it will soon begin supporting certain cryptocurrencies directly on its network to give customers, merchants, and businesses more options on how to use their money. The move comes after more and more users have started using credit cards from Mastercard and other companies to purchase crypto assets, especially during Bitcoin's recent rise in value. At the same time, the company has increasingly seen its customers take advantage of crypto cards to access their assets and convert them into traditional currencies to spend. However, since this is a big change for Mastercard, the payments giant plans to be quite selective about which cryptocurrencies it will support. The decision to support one cryptocurrency over another will be based on digital currency business principles that focus on consumer protection and compliance. Mastercard will not recommend its customers start using cryptocurrency, but the company will allow customers, merchants, and businesses to move digital value, whether traditional or crypto, as they see fit.
Cryptocurrency support
By opening up its network to the selection of cryptocurrencies, Mastercard will create new possibilities for buyers and merchants. For example, merchants can attract new customers who have already flocked to digital assets or sellers can retain existing customers who want this added option. In a new blog post, Mastercard's executive vice president of blockchain and digital asset products and partnerships, Raj Dhamodharan explained that not all current cryptocurrencies will be compatible with the company's network. Indeed, many of the hundreds of digital assets in circulation will need to strengthen their compliance measures to meet business demands. Mastercard will support cryptocurrencies that comply with local laws and regulations in the regions in which they are used, have built-in consumer protections, include strict compliance protocols, including Know Your Customer, and are stable enough to be a vector of spending and not just investment. The company is also working with several major central banks around the world as part of its review of plans to launch new digital currencies called CBDCs (Central Bank Digital Currency). We'll likely hear more from Mastercard once its crypto plans end, but interested users can already get a crypto card from the payments giant through its partnership with Wirex and BitPay last year.