MasterCard is Open to a Central Bank-Issued Cryptocurrency

Cryptocurrency Mastercard

According to the co-president of Mastercard Asia-Pacific business, MasterCard is positive towards the adoption of a Central Bank-issued national cryptocurrency, stated Times.

“If governments look to create national digital currency we’d be very happy to look at those in a more favourable way [as opposed to traditional cryptocurrencies],” said MasterCard’s senior executive Ari Sarker.

“So long as it’s backed by a regulator and the value . . . it is not anonymous, it is meeting all the regulatory requirements, I think that would be of greater interest for us to explore,” he added.

Further more, Sarker mentioned that MasterCard was already running a Bitcoin pilot program in Japan and Singapore that allows bitcoin holders to cash out with MasterCard.

“We are not operating trading of bitcoin through the MasterCard network […] [The pilot program] is a toe in the water, we’re fully cognisant of the reputational risk.”

The news outlet also expressed that both Visa and MasterCard are now considering Bitcoin purchases as “cash transactions,” which include more fees for MasterCard’s cryptocurrency clients.

A MasterCard spokesperson stated that more than  30 “patents related to blockchain technology and cryptocurrency” were filed by the company.

“MasterCard Labs is working on a Blockchain technology that will support a wide range of use cases, including but not exclusive to [business to business] interbank payments, tracking trade finance obligations along the value chain, exchanging know your customer and anti-money laundering data between trusted parties, and more.”

The company is also running another pilot program in Singapore and Australia  for contactless payment transport system, Sarker told the Financial Times.

Recently, many banks have made announcements concerning cryptocurrency, including Bank of America and the People’s Bank of China.




2 thoughts on “MasterCard is Open to a Central Bank-Issued Cryptocurrency

Leave a Reply