Mastercard, a leading global payment technology company, has announced that it will enable merchants to accept cryptocurrency payments directly on its network. This means that consumers will be able to use their cryptocurrency holdings to make purchases at merchants that accept Mastercard, without the need for conversion to fiat currency.
Embracing Web3
Mastercard’s decision to support cryptocurrency payments comes as part of the company’s efforts to embrace the Web3 ecosystem, which refers to the next phase of the internet that is being built on decentralized technologies. The company has partnered with Circle, a leading provider of stablecoins, to enable cryptocurrency payments through USDC, a stablecoin that is pegged to the US dollar.
According to Raj Dhamodharan, Executive Vice President of Digital Asset and Blockchain Products at Mastercard, the company believes that enabling cryptocurrency payments will create new opportunities for merchants and consumers alike. In a blog post announcing the news, he stated that “this change is an important step on our journey to supporting the Web3 ecosystem, which we believe has the potential to revolutionize how we interact online and in the real world.”
USDC is a popular stablecoin that is widely used in the cryptocurrency ecosystem. It is designed to maintain a one-to-one peg with the US dollar, making it a more stable store of value than other cryptocurrencies like Bitcoin and Ethereum. By settling payments in USDC, Mastercard is able to provide merchants with greater certainty about the value of the payments they receive, while also reducing the risk of volatility associated with other cryptocurrencies.
Mastercard Keen on Compliance
The ability to settle payments in USDC also allows Mastercard to comply with regulatory requirements related to anti-money laundering (AML) and counter-terrorism financing (CTF), as well as ensuring that its network is secure and resilient.
Mastercard’s decision to support cryptocurrency payments is the latest in a series of moves by the company to embrace digital currencies and blockchain technology. In July 2021, the company announced that it was partnering with Uphold, a digital wallet and trading platform, to launch a cryptocurrency card that allows users to spend their cryptocurrency holdings at merchants that accept Mastercard.
Mastercard also recently launched a new prepaid card in Latin America that allows consumers to make purchases using cryptocurrencies. The card is a partnership between Mastercard and the digital asset exchange platform, Bitso, and is available to consumers in Mexico.
With the new card, users can convert their cryptocurrency holdings into Mexican pesos, which can then be used to make purchases at merchants that accept Mastercard. The card supports several cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, among others.
Conclusion
Mastercard’s decision to enable cryptocurrency payments through USDC settlements represents an important step in the company’s efforts to embrace the Web3 ecosystem. By providing merchants with the ability to accept cryptocurrency payments directly on its network, Mastercard is helping to make the use of cryptocurrencies more mainstream. With the growing popularity of stablecoins like USDC, it is likely that more payment companies will follow Mastercard’s lead and offer support for cryptocurrency payments in the future.
The original article appeared on Cointelegraph.
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