Payments giant Mastercard has announced that it is preparing to allow a number of cryptocurrencies to move through its network directly. Customers, merchants, and businesses will no longer need to convert cryptocurrencies into fiat currencies to transfer through the Mastercard network.
Mastercard Prepares to Let Cryptocurrencies Move Through its Network
Mastercard announced Wednesday that it will start â€œbringing crypto onto its network.â€ In a blog post on the companyâ€™s official website, Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain, explained that â€œdigital assets are becoming a more important part of the payments world.â€ He noted that customers are using Mastercards to buy cryptocurrencies, especially during bitcoinâ€™s bull runs, elaborating:
â€œWe will be very thoughtful about which assets we support based on our principles for digital currencies,â€ the executive emphasized, adding that the same standard applies to stablecoins. â€œWe are here to enable customers, merchants and businesses to move digital value,â€ he opined.
Dhamodharan pointed out that Mastercard is involved in a number of crypto projects, having teamed up with Wirex and Bitpay last year to create crypto cards that allow people to transact using their cryptocurrencies. The company then joined forces with crypto exchange LVL this year. â€œThese relationships â€” with many more planned in the pipeline â€” build on our many years of crypto collaborations,â€ he said.
Even though Mastercard is involved in a number of crypto projects, Dhamodharan said that â€œcryptocurrencies still donâ€™t move through our network. Our crypto partners convert the digital assets on their end to traditional currencies, then transmit them through to the Mastercard network.â€ He continued:
Lastly, Dhamodharan said that his company is â€œactively engagingâ€ with several major central banks worldwide as they explore central bank digital currencies (CBDCs). â€œLast year, we created a test platform for these banks to use these currencies in a simulated environment,â€ he noted, adding that Mastercard already has â€œone of the payments industryâ€™s biggest blockchain patent portfolios to draw from to make these projects successful.â€
Commenting on the Mastercard news, bitcoin bull Mike Novogratz tweeted: â€œThe Mastercard news is huge. A few months ago it would have been all the crypto community would focus on for the ensuing month. Now we are getting so much good news it almost goes unnoticed. Let me repeat. It is huge news. Crypto adoption is here.â€
Recently, Mad Money host Jim Cramer said that Mastercard, along with Paypal and Elon Muskâ€™s Tesla, is driving bitcoin more into the mainstream. Tesla revealed Monday that it has put $1.5 billion into bitcoin.
What do you think about Mastercard directly supporting cryptocurrencies on its network? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.