Mastercard is planning on giving merchants the option of receiving payments directly in cryptocurrencies later this year, through a new functionality that would add on existing partnerships that let consumers pay in crypto, but converts the funds to fiat.<\/p>\n
According to a blog post published by Mastercard\u2019s executive vice president for digital assets Raj Dhamodharan, the firm is opening its network to allow merchants to receive cryptocurrency payments directly after pointing out it\u2019s been seeing growth in the crypto sector.<\/p>\n
Dhamodharan\u2019s post starts by pointing out digital assets \u201care becoming a more important part of the payments world,\u201d before adding that people are using the company\u2019s network to buy cryptoassets, especially after the price of bitcoin recently surged to a new all-time high above $48,000.<\/p>\n
The post adds:<\/p>\n
We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network. This is a big change that will require a lot of work.<\/p>\n
It notes that Mastercard will be \u201cvery thoughtful\u201d about which cryptoassets are supported, based on its principles for digital currencies. Per CoinDesk, cryptocurrencies will be evaluated against Mastercard\u2019s 2019 \u201cPrinciples for Blockchain Partnerships\u201d framework, which emphasizes stability, consumer protection, and regulatory compliance.<\/p>\n
Dhamodharan added that the firm\u2019s philosophy on cryptocurrencies is simple, as it\u2019s about choice and Mastercard \u201cisn\u2019t here to recommend you start using cryptocurrencies.\u201d Instead, it wants to enable customers, merchants and businesses to move value.<\/p>\n
The post reads:<\/p>\n
We are here to enable customers, merchants and businesses to move digital value \u2014 traditional or crypto \u2014 however they want. It should be your choice, it\u2019s your money.<\/p>\n
It further points out that not all cryptocurrencies will be supported on the network, but hints stablecoins may be first in line as they are \u201cmore regulated and reliable than in the recent past,\u201d even though most circulating cryptoassets \u201cneed to tighten their compliance measures\u201d to meet the firm\u2019s requirements.<\/p>\n
Mastercard will be looking for cryptoassets that can provide consumer protections including privacy and security of information, as well as compliance including know-your-customer checks. It concludes that \u201cto reach out network, crypto assets will need to offer the stability people need in a vehicle for spending, not investment.\u201d<\/p>\n
Mastercard has already partnered with several cryptocurrency firms, including Uphold and Wirex, allowing crypto users to pay with cryptocurrencies. The funds were, however, converted to fiat before they reached merchants.<\/p>\n
Featured image via Pixabay.<\/p>\n