On a daily basis, things shift and news ventures emerge as old ones fade away. Older names in finance, such as MasterCard, are now finding new ways to stay in touch with the future. During an investment community meeting held on November 10th by MasterCard, an announcement and plan was laid out that is a push in the direction in future economics for the firm, with a highlight specifically around cryptocurrency.
In this plan, MasterCard discussed specific things that will help the crypto community push forward and allow everyday people to feel more safe about using cryptocurrency. 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.
MasterCard senior executives believe that crypto payment flows, including remittances, traditional finance (TradeFi) and decentralized finance (DeFi) represent a net new volume for the company. This is emphasized by recent partnerships in the Asia Pacific region that will allow consumers and businesses across the area to obtain crypto-linked Mastercard credit, debit and prepaid cards.
MasteCard said in late October that the company was working with digital asset platform Bakkt to allow merchants and banks in the U.S. to build cryptocurrency into their offerings, and now we are seeing some of the executional side of that operation. This news can have an impact on who will enter the crypto world, as some believe it will inspire other major firms to get involved; MasterCard competitor Visa has been making initiatives in the space this year as well.
Mind Of A MasterCard
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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These partnerships and the roll out behind them could be a great push for parties involved. MasterCard can now tap into a base of people who only utilize crypto currency to make online purchases along with the holders of coins who wish to secure more 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?