Mastercard has announced that it will begin to support certain cryptocurrencies directly on it’s network. Initially, Mastercard will select specific assets based on their principles for digital currencies, which prioritize compliance and consumer protections.
Rather than recommend users adopt cryptocurrency use, Mastercard is will support customers, merchants and businesses to move digital value by way of selection. By offering this new form of payment, the possibilities for shoppers and merchants are infinite as it offers merchants the potential of new customers that are adopting digital assets and it helps sellers to build loyalty with the customers that are looking for an additional payment option.
Mastercard has explained that only cryptocurrencies that meet their requirements will be offered on their network, and that many of the digital assets in circulation need to increase their compliance measures to adhere to the standards of Mastercard.
The four key standards that Mastercard requires are:
1. Consumer Protection – including privacy and security information
2. Strict compliance protocols – Know your Customer
3. Strict adherence to local laws and regulations based on the regions they are used
4. Crytpo assets must be a vehicle for spending, and not just investing.
On top of this, Mastercard is engaging with several central banks worldwide as they prepare launch central bank digital currencies (CBDCs), offering citizens of these countries a new form of payment.