Mastercard has announced plans to allow its merchants across the world receive payment in crypto assets soon. Available information has shown that the payment processing company will add this new crypto feature before this year runs out. This would be a first for the financial institution though it is yet to disclose which cryptocurrency it is going to be supporting.
Michael Miebach, the firm’s CEO had earlier made a promise to make sure that the company integrates a digital currency payment option directly on its system. The top executive believed that this option would offer more flexibility for their customers and also to their merchants.
The firm’s previous foray into the crypto space was through its partnerships with Wirex and Uphold where it supported a very limited amount of crypto transactions. This partnership only covered payments and not settlement as the crypto assets are converted to fiat currencies before they get to the merchants.
With this new development, merchants and their customers would be able to diversify their earnings away from the usual fiat currency. This might be a challenge for the company as most people actually do hold the digital currencies as an investment tool and not as a means of transactions.
Mastercard Would Focus on Regulatory Compliance
Mastercard has said that its integration of virtual coins would be based on its 2019 framework where it stated that its focus is on “stability, consumer protection and regulatory compliance in vetting potential partners.” According to the firm, most of the digital currency available then could not offer this feature.
However, with the advancement made in the field today, the institution’s Executive Vice President for Blockchain and Digital Asset Products, Raj Dhamodharan has hinted that stablecoins could be a major beneficiary of this new crypto feature.
Dhamodharan highlights the fact that the firm would not recommend users to start using crypto, but users who might be willing to use digital currencies for their transactions would find a willing partner with them.