Mastercard set to launch new cryptocurrencies to boost digital assets

*Mastercard Inc. reveals it plans to prioritise consumer protection and compliance, as it plans to launch and allow new cryptocurrencies on its network

Isola Moses | ConsumerConnect

While prioritising consumer protections and compliance in its plans, Mastercard Inc.has stated the company will begin allowing cardholders to transact in certain cryptocurrencies on its network, becoming the latest company to embrace digital assets.

The firm in a blog post Wednesday, February 10, stated it is also “actively engaging” with central banks around the world on their plans to launch new digital currencies.

Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain Products and Partnerships, said the company would prioritise consumer protection and compliance in its own plans on the project.

Mastercard has already partnered with some of the biggest cryptocurrency firms, including Wirex and BitPay, but the company has historically required digital currencies to be converted into fiat currencies before processing payments for transactions on its network, report Bloomberg.

Dhamodharan noted that “our change to supporting digital assets directly will allow many more merchants to accept crypto — an ability that’s currently limited by proprietary methods unique to each digital asset.

“This change will also cut out inefficiencies, letting both consumers and merchants avoid having to convert back and forth between crypto and traditional to make purchases.”

Mastercard’s announcement comes after Tesla Inc. said it invested $1.5 billion in Bitcoin this week, sending the cryptocurrency to a record.

“Our philosophy on cryptocurrencies is straightforward: It’s about choice,” Dhamodharan said.

“Mastercard isn’t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value.”

ConsumerConnect had reported rival Visa Inc. recently said if a digital currency becomes a recognised means of exchange, there would be no reason why the firm would not add it to its network, which already supports 160 currencies.

Visa Chief Executive Al Kelly, during the company’s recent earnings call, described Bitcoin as “digital gold” and said cryptocurrencies are “not used as a form of payment in a significant way at this point.”

According to Kelly, it’s purely a numbers game ─ one that he feels will prove itself to be a safe bet long term.

“Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally.

Visa is currently planning to develop a suite of software applications, so that banks can enable cryptocurrency trading and allow consumers to purchase and sell Bitcoin and other cryptocurrencies at conventional banks.

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