Crypto payments are taking their place in the financial market lately. Noticing this, Mastercard has stepped forward to support payments in form of cryptocurrencies later this year. However, the currency must be in strict compliance including Know Your Customers (KYC) to meet its criteria of reliability and security. Many other crypto cards failed to meet the market needs due to security issues. These digital assets were performing as an investment opportunity for quite a long time now. This action by Mastercard will bring cryptos forward as a safe and trusted method of payment.
The digital asset and blockchain VP of Mastercard, Raj Dhamodharan stated “This is a big change that will require a lot of work. We will be very thoughtful about which assets we support,” indicating that the action would keep consumer protection in mind by stating some rules.
In the blog post, Dhamodharan also said that unlike other cryptocurrency cards, this one will not result in converting cryptocurrencies to fiat currencies. Instead, merchants will be able to accept payments in the form of these digital assets. Hence, encouraging people to keep cryptos in their wallet balance. The purpose is to add digital value to payer’s and payee’s needs. However, the blog post clearly said that “It should be your choice, it’s your money.“
The acceptance of cryptos by the Mastercard will allow flexibility of payments to a lot of people who deal with digital currencies these days. There is a value-addition of comfort in people’s lives through this decision.
People from all over the world are dealing with virtual currencies. The world-famous company, Tesla also bought a $1.5 billion bitcoin investment revealing that it would soon start accepting payments in form of cryptos. Are we moving on to a cashless economy by promoting these digital currencies?