Mastercard Inc. said Wednesday that it would begin allowing merchants to accept some cryptocurrencies on its network later this year, marking the latest embrace of digital coins by a traditional payments player.
“We are here to enable customers, merchants and businesses to move digital value — traditional or crypto — however they want,” Mastercard’s executive vice president for digital assets Raj Dhamodharan said in a blog post.
Mastercard MA, already works with some crypto platforms that issue Mastercard cards allowing people to spend their crypto assets, but through those arrangements the cryptocurrencies don’t flow through Mastercard’s network, as the crypto partners convert the digital currencies to traditional currencies and then transmit them to Mastercard. By moving to support some crypto assets directly, Mastercard will “cut out inefficiencies, letting both consumers and merchants avoid having to convert back and forth between crypto and traditional to make purchases,” Dhamodharan said.
Mastercard plans to be selective about which cryptocurrencies it allows as it embarks on its plan. The company will be looking for cryptocurrencies that respect the privacy of consumer information, follow compliance procedures and “offer the stability people need in a vehicle for spending, not investment.” Read from source….