Everyday, news ventures evolve and things change. MasterCard is one of the oldest names in finance. They are looking for new ways to be in tune with the future. MasterCard held a meeting with the investment community on November 10, where they made an announcement about a plan that would guide future economics. The highlight was cryptocurrency.
MasterCard discussed in this plan specific items that MasterCard believes will allow the cryptocurrency community to grow and make it more accessible for everyday users. The firm spoke that the focus will be built around “crypto enablement,” which involves spending, cashing out, and cryptocurrency rewards, as well as crypto security, identity services, and network access. This happens also include interoperability, stablecoins and central bank digital currencies (CBDC) – all of which are increasingly hot topics in crypto lately.
According to senior MasterCard executives, crypto payment flows (including remittances) are a significant new source of revenue for the company. Recently, this was emphasized by MasterCard senior executives. Partnerships in Asia Pacific that allow customers and businesses to get crypto-linked Mastercard debit, credit and prepaid cards.
MasteCard stated in October that they were working with Bakkt digital asset platform to enable U.S. banks and merchants to incorporate cryptocurrency in their offerings. We now see some of the executional aspects of that operation. The news could have an effect upon who enters the cryptocurrency world. Some believe that it will encourage other large firms to do the same. Visa, a MasterCard competitor has already started initiatives this year in the sector.
MasterCard’s executive Vice President Rama Sridhar said that ”in collaboration with these partners that adhere to the same core principles that MasterCard does—that any digital currency must offer stability, regulatory compliance and consumer protection—MasterCard is expanding what’s possible with cryptocurrencies to give people even greater choice and flexibility in how they pay”.
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This partnership and its rollout could provide a huge boost to all involved. MasterCard will now be able to reach a large base of crypto-currency holders who want to increase their gains.
We don’t know exactly when these will come into play, but after a public announcement like this, we know it’s likely coming in the next year or so. What other top card companies will follow the firm’s lead and start to implement things that involve cryptocurrency?