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Mastercard Inc. said on Wednesday that it would begin allowing merchants to accept certain cryptocurrencies on its network later this year, marking the latest adoption of digital coins by a traditional payments player.
“We’re here to enable customers, merchants and businesses to move digital value – traditional or crypto – however they want,” Mastercard Executive Vice President for Digital Assets Raj Dhamodharan said in an article. blog.
MA Mastercard,
already works with some crypto platforms that issue Mastercard cards that allow people to spend their crypto assets, but thanks to these arrangements, cryptocurrencies do not pass through Mastercard’s network, as crypto partners convert digital currencies into traditional currencies and then transmit them to Mastercard. By directly supporting certain crypto assets, Mastercard “will eliminate inefficiencies, allowing consumers and merchants to avoid having to convert between crypto and traditional to make purchases,” Dhamodharan said.
Mastercard plans to be selective about what cryptocurrencies it allows as it embarks on its plan. The company will seek out cryptocurrencies that respect the privacy of consumer information, follow compliance procedures, and “provide the stability people need in a spending vehicle, not an investment.”
Traditional fintech companies are increasingly experimenting with new digital assets. Mastercard, for its part, had previously revealed that it has had discussions with central banks over the possibility of “central bank digital currencies,” which would serve as alternative means of paying beyond fiat money.
Michael Miebach, Managing Director of Mastercard, said on the company’s latest earnings call that Mastercard’s focus on consumer protection and transparency, as well as its acceptance network, could prove useful in central banks as they contemplate this future of money.
Visa Inc. CEO Al Kelly said on Visa’s V,
The most recent revenue indicates that the company has also made deals with platforms and digital wallets that issue Visa cards so customers can spend their crypto holdings. “These portfolio relationships represent the potential of over 50 million Visa credentials,” he said.
Kelly also spoke widely about the prospects for cryptocurrency on Visa’s platform. “It goes without saying that as a specific digital currency becomes a recognized medium of exchange, there is no reason why we cannot add it to our network, which already supports more than 160 currencies today, ”he said.
PayPal Holdings Inc. PYPL,
started letting US users buy and sell cryptocurrencies like bitcoin through its platform late last year, and the company plans to allow consumers to use their crypto balances as funding instruments when ‘They’re buying from PayPal merchants as of this quarter. Square Inc. SQ,
CEO Jack Dorsey is a big supporter of bitcoin, and he started letting Square’s Cash app users buy and sell this cryptocurrency over three years ago.
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