In an unprecedented announcement, the giant Mastercard said it would directly integrate crypto to its payment network.
“We are now preparing for the future of cryptocurrencies and payments, announcing that this year Mastercard will begin supporting selected cryptocurrencies directly on our network. This is a big change that will require a lot of work ”- said Raj Dhamodharan, Executive VP in the area of Blockchain and Products.
After losing the start of cryptocurrency-related fintechs (Alter uses Visa, for example), Mastercard does not want to pass up new opportunities to capture this nascent crypto market. It is worth noting that the payments giant has already partnered with Wirex and Bitpay to provide cards linked to the cryptocurrency market.
“In all of these cases, cryptocurrencies still don't move through our network. Our crypto partners convert your side's digital assets into traditional currencies, and then transmit them to the Mastercard network. Our move to support digital assets directly will allow many more merchants to accept crypto – a capability that is currently limited by proprietary methods unique to each digital asset. ”
However, Mastercard did not mention which assets will be integrated, stating that it will consider some factors such as:
Know your customer (KYC); Consumer protection; Assets that customers want to spend and not invest. That is, apparently they want to integrate mainly the stablecoins. The company also said it was working with central bank digital currencies (CDBCs). Even so, the philosophy of financial sovereignty behind Bitcoin is present in the ad:
“We are here to allow customers, merchants and companies to move digital value – traditional or crypto- as they wish. The choice must be yours, the money is yours. ”
Other big companies like Paypal, Tesla and Square have already entered the crypto market once and for all.
See too: Visa Executive Recognizes the Importance of Crypto