MasterCard Inc. (NYSE:MA) has announced that it will start supporting select cryptocurrencies on its network later this year, becoming part of other big companies that have pledged support for crypto.
MasterCard announces support for cryptocurrencies on its network
The payment processing company’s announcement comes at the back of Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk’s revelation that he acquired around $1.5 billion worth of BTC. Soon, he plans to accept a payment form. So far, payment firms PayPal Holdings Inc. (NASDAQ:PYPL) and Square Inc. (NYSE:SQ) and asset manager BlackRock have in the past pledged their support for cryptos. Currently, MasterCard offers cards that allow customers to transact using cryptocurrencies, albeit not through their network.
According to the company, the move comes as there is an increase in people using MasterCard debit cards to buy cryptocurrencies, more so following the recent surge in BTC value. MasterCard said that it has seen the number of people using crypto cards grow, and thus they are ready to support the digital coins.
In a statement, the company indicated that the move will create several possibilities for merchants and shoppers. This will enable them to transact in a new payment form, and such a change can open merchants to new customers who are currently holding cryptocurrencies. However, the payment processing giant clarified that not all digital currencies will be supported on the network.
MasterCard has conditions cryptos should meet before supporting them
MasterCard added that most of the hundreds of cryptos currently in circulation should first tighten their compliance measures. The company wants cryptocurrencies to offer string consumer protection, including security and privacy of data. Also, it wants stakeholders, including merchants, mobile network operators, and financial institutions, to contribute to and benefit from blockchain networks.
Over the past, most cryptocurrencies have struggled to gain approval from mainstream investors and the general public. This is mainly because of the association of being used in money laundering and their speculative nature. Interestingly the company has not specified the types of cryptos its will support.