Mastercard joins the cryptocurrency wave and the company will integrate some of them into its payment network.
With Bitcoin at all-time highs and much of the rest of the cryptocurrencies the following suit, digital securities are stronger than ever. It is not something that has gone unnoticed by Mastercard, which says it will start supporting specific cryptocurrencies directly on its network. A historic step for one of the largest players in global payments.
Mastercard joins the cryptocurrency wave
As they have indicated in an official announcement, they will soon start accepting and integrating selected cryptocurrencies into their network. How exactly they will integrate them remains to be seen, although in principle they refer to transferring and allowing payments directly in cryptocurrencies. Currently, while it accepts some of them, it is through intermediaries that transform them into state and traditional currencies pre and post-transaction.
Mastercard says that they do not seek this to offer any kind of recommendation on whether or not to use cryptocurrencies. Their position is rather to offer the possibility for users to use cryptocurrencies directly without having to convert to dollars or euros, among others. Something similar to what PayPal, for example, is looking for.
Mastercard mentions the possibility for merchants to offer users the option to pay in cryptocurrencies. They also mention that Mastercard customers will be able to “save, store and send money in new ways”.
They have declined to indicate which cryptocurrencies will be part of their network and when. However, they do refer to cryptocurrencies with stability and avoid those with high volatility. We will have to wait in the coming months to see these integrations and how they directly affect the end-user.
The commitment of large companies to cryptocurrencies
While Mastercard is preparing to introduce cryptocurrencies in its network, other companies are already fully committed to it. We have the aforementioned PayPal, which will allow instant transactions in cryptocurrencies among its users. Cash is another company that has been in this market for years.
In the section of banks and financial institutions, we have JP Morgan, Deutsche Bank, Citibank, and even BBVA looking favorably on cryptocurrencies.
Finally, and as the most recent example, we have Tesla and its $1.5 billion investment in Bitcoin. It has allowed it to earn more money in two weeks than in twelve years selling cars. At the cost of a tremendous ecological impact.
