Mastercard has announced it will add cryptocurrency to its network. In a blog post on Wednesday, the international payments major indicated that it will give preference to 'stable coins' or cryptocurrencies that are linked to fiat currencies like the dollar.
"Whatever your opinions on cryptocurrencies — from a dyed-in-wool fanatic to utter skeptic — the fact remains that these digital assets are becoming a more important part of the payments world," the post said. "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," it added.
Why Mastercard Is Taking the Next step with crypto.
With cryptocurrencies becoming more accepted as an investment and payment method, Mastercard is taking steps to make it easier for people to transact using secure digital currencies.
The network will add crypto this year.
Mastercard’s announcement says that consumers will be able to begin transacting in crypto on its network sometime in 2021.
However, some experts have questioned the feasibility of implementation based on Mastercard’s requirements. According to the company, cryptocurrencies must meet certain criteria to be considered. Those include:
Provide strong consumer protection, including privacy and security of consumer information and transaction data.
Allow all stakeholders, including financial institutions, merchants, and mobile network operators, to contribute to and benefit from their blockchain networks.
Operate in compliance with applicable laws and regulations, including anti-money laundering laws.