Mastercard announced it has begun work to enable its merchant network to process cryptocurrency transactions.
In a posting on the Purchase-headquartered company”™s corporate blog, Executive Vice President Raj Dhamodharan stated Mastercard “will start supporting select cryptocurrencies directly on our network” ”“ although he did not identify which particular cryptocurrencies were being considered. Dhamodharan observed that people were “using cards to buy crypto assets, especially during Bitcoin’s recent surge in value,” but he also stressed this change will come after careful preparation.
“This is a big change that will require a lot of work,” he said. “We will be very thoughtful about which assets we support based on our principles for digital currencies, which focus on consumer protections and compliance.
“Our philosophy on cryptocurrencies is straightforward: It”™s about choice,” he added. “Mastercard isn”™t here to recommend you start using cryptocurrencies. But we are here to enable customers, merchants and businesses to move digital value ”“ traditional or crypto ”“ however they want. It should be your choice, it”™s your money.”
Dhamodharan stressed the cryptocurrencies that would be supported by Mastercard”™s network would need to meet compliance standards related to consumer protection and meet the laws and regulations in the regions where they are being used. He also noted the company was working with third-party vendors including Wirex, BitPay and LVL to create Mastercard-branded cards to allow for cryptocurrency transactions to be converted into traditional currencies, and it is also working with several central banks around the world in their reviews of cryptocurrencies.
“We are inspired by so much of the work going on in the payments world ”” in banking, in emergent fintechs, in crypto ”” to push forward change,” Dhamodharan said. “And we are doing as much as we can to set the stage for these players to take the next step forward.”
