After Visa and PayPal, Mastercard is about to adopt crypto-currencies. The credit card payment giant published this morning a post on its official blog announcing to its billion customers the support of crypto-currencies. Raj Dhamodharan, group vice president says:
We are seeing users increasingly taking advantage of crypto cards to access these assets and convert them into traditional currencies to spend.
Until now, crypto-currency cardholders could only spend their assets using specific cards provided by platforms such as Binance or Coinbase. During transactions, these cards convert the crypto-money into euros, dollars or any other currency. A market that Mastercard intends to occupy, but with caution.
Paying in Bitcoins with a Mastercard will remain impossible
Don’t expect to spend your bitcoin or ethereum with your credit card. Mastercard states in its press release that its payment network will be open to « assets that offer reliability and security ».
Thus, Mastercard will only authorize transactions of stablecoins, stable crypto-currencies (Tether, Gemini Dollars for example) whose rate is backed by that of a fiduciary currency (1 tether = 1 dollar). All other crypto-currencies will therefore not be supported by Mastercard.
Bitcoin, Ethereum, Litecoin and Dogecoin – whose extreme volatility is no longer to be demonstrated – are therefore excluded from the American company’s program.
This is a cautious move that leaves plenty of room for competition. Visa, which already offers payment in USDC, will support new crypto-currencies, including the very popular Bitcoin. Paypal has also adopted the world’s most popular crypto-money by the end of 2020.
Recently, Bitcoin has risen sharply to over $40,000. A price explosion caused by Tesla’s 1.5 billion dollar investment in crypto-money. Elon Musk’s antics on Twitter have also contributed to the popularity of Dogecoin, another less well-known crypto-currency. So far…