Mastercard, an American financial services firm, announced that it is planning to support some cryptocurrency assets on its network this year. The company mentioned that digital currencies are becoming an important part of the financial world.
According to an official post by Raj Dhamodharan, EVP Blockchain and Digital Partnerships at Mastercard, the company will focus on consumer protection and compliance before the selection of cryptocurrency assets. Mastercard has already started working on the integration of selected crypto assets on its network.
Additionally, the financial services provider mentioned that not all cryptocurrencies will be supported on its network as many of the digital assets require strict compliance. Mastercard partnered with Wirex and BitPay last year to create cryptocurrency cards.
“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. 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 official announcement states.
Liquidity Constraints in 2021 – What is the Best Path Forward?Go to article >>
Focus on Consumer Protection
Mastercard mentioned that the company’s primary focus will be on consumer protection. Moreover, the firm is focusing on strict cryptocurrency KYC requirements along with the security of consumers.
“Strict compliance protocols will be needed, including Know Your Customer, a requirement meant to snuff out illegal activity and deception in payment networks. Also, these digital assets must follow local laws and regulations in the regions they are used,” the company added.
Mastercard currently has 89 blockchain patents along with 285 blockchain applications pending approval worldwide. Furthermore, the firm is engaged with several central banks around the world as they review plans to launch new digital currencies (CBDCs) to offer its citizens a new way to pay.