MasterCard announced its plan to support cryptocurrencies in 2021, paving the way for nearly one billion users to shop for digital assets in more than 30 million businesses.
The firm believes that with this move, business owners can open up to new customers and build loyalty for existing customers who switch from traditional fiat currencies to digital assets.
“It’s a matter of choice. Rather than suggesting that you start using cryptocurrencies, MasterCard offers an alternative to enable both customers and businesses to move digital assets.”
While the global payments giant stated that it plans to support stablecoin options thanks to its “reliability and security”, it avoided providing information about the cryptocurrencies it will integrate.
However, Mastercard presented four basic criteria for the cryptocurrencies it will consider: consumer privacy and security, strict Know Your Customer (KYC) compliance, adherence to local laws and regulations, stable pricing to be a payment instrument, and consumer protection.
MasterCard also stated that it “actively interacts with central banks around the world” to support central bank digital currency initiatives (CBDC).
Last year, the firm shared a “sandbox” tool where it showed how a CBDC can be used to process purchases using the MasterCard infrastructure.