Mastercard plans to support cryptocurrency payments in 2021

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Mastercard, an American financial services company, announced that it is going to support some cryptocurrency assets on its network in 2021. The company said that digital currencies are becoming a big part of the financial world.

According to an official post by Raj Dhamodharan, EVP Blockchain and Digital Partnerships at Mastercard, the firm will focus on consumer protection and compliance before choosing the cryptocurrency assets to support. Mastercard has already started working on the integration of chosen crypto assets on its network.

Moreover, the financial services provider stated that not all cryptocurrencies will be supported on its network as many of the digital assets need strict compliance. Mastercard partnered with Wirex and BitPay in 2020 to produce cryptocurrency cards.

“To be completely clear, not all of today’s cryptocurrencies will be supported on our network. While stablecoins are more regulated and reliable than in the recent past, many of the hundreds of digital assets in circulation still need to tighten their compliance measures, so they won’t meet our requirements. We expect consumers and the ecosystem as a whole will start to rally around the crypto assets that offer reliability and security. It’s those very same stablecoins that we expect to bring into our network,” the official announcement states.

Mastercard added that the firm’s primary focus is on consumer protection. Moreover, it is focusing on strict cryptocurrency KYC requirements along with the security of consumers.

“Strict compliance protocols will be needed, including Know Your Customer, a requirement meant to snuff out illegal activity and deception in payment networks. Also, these digital assets must follow local laws and regulations in the regions they are used,” the company added.

Mastercard currently has 89 blockchain patents along with 285 blockchain applications pending approval globally. Additionally, the firm is engaged with many central banks around the world as they review plans to launch new digital currencies (CBDCs) to offer its citizens a new way to pay.

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