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Mastercard to support cryptocurrency payments this year

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“This is a big change that will require a lot of work. We will be very thoughtful about which assets we support, ”added Raj Dhamodharan, Vice President of ´digital asset and blockchain´ at Mastercard. The primary metric by which a ´stablecoin´ will be judged is consumer protection, including privacy and strict supervision of consumer information – essentially “the same level of security that people have been waiting for on their credit cards”, said Dhamodharan.

In addition, cryptocurrencies will have to implement strict compliance measures, including “Know Your Customer”, which simplify the verification process used by the financial services industry. They must also respect local laws and regulations in the regions in which they operate.

Finally, digital assets must be accepted as a form of payment, rather than acting as an investment opportunity. Now Mastercard has become the latest payment company to give the blessing to cryptocurrencies. The financial services company began preparations to support selected cryptocurrencies later this year, Mastercard’s digital asset and VP ´blockchain´ Raj Dhamodharan, mentioned in a blog post.

Mastercard to support cryptocurrency payments this year

Of course, if we want to be part of the established, we will have to play by the rules. After seeing an increase in crypto transactions, Mastercard is preparing to accept selected currencies that meet its criteria around security, reliability and compliance. Which effectively means that many of the virtual currencies may not make the cut at the first hurdle.

At the same time, the move will allow many more retailers to accept crypto as a form of payment. Mastercard’s decision to fully embrace crypto follows in the footsteps of payment company PayPal – which began allowing US users to buy, sell and make virtual currencies in November.

Tesla also recently purchased $ 1.5 billion (Approximately 1.23 billion Euros) in Bitcoin and said it would soon start accepting it as payment.

Mastercard has been addressing crypto, but has never allowed currencies to move through its network, instead of relying on its partners (including Wirex and BitPay) to convert digital assets into traditional currencies for spending. It also holds 89 blockchain patents worldwide, with more than 285 pending applications.

Source: Engadget

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