Tech in Africa
MasterCard has kick-started the process of accepting cryptocurrencies into its network, in response to the increased use of cards to purchase crypto assets. As a preparation for the future of crypto MasterCard will enable merchants, customers, and businesses to move digital value through crypto or fiat.
The adoption of cryptocurrencies to the Mastercard network will be selective based on its principles for digital currencies. The focus will be on stablecoins as are more reliable and regulated. A good number of digital coins in circulation still need to revamp their compliance measures. It is expected that consumers operating in the ecosystem will rally around crypto assets that offer security and reliability.
Mastercard will focus on consumer protections similar to that of credit cards, strict compliance protocols such as Know Your Customer for capturing illegal activity, adherence to laws and regulations the regions of operation, and offer stability as a unit for spending not solely investment.
Last year, Mastercard partnered with BitPay and Wirex to create crypto cards that help people transact their cryptocurrencies. This year, Mastercard teamed up with LVL (a crypto exchange). In all these partnerships, cryptocurrencies do not move through Mastercard’s network, instead, the crypto partners do the conversions on their end then transmit them through the Mastercard network. The change will allow more merchants to access crypto, cut out inefficiencies, and allow both merchants and consumers to avoid the back and forth in crypto conversions.
