Mastercard Inc. will start allowing cardholders to transact in certain cryptocurrencies on its network, according to Bloomberg. The company is also engaging central banks on plans to launch new digital currencies.
- Mastercard becomes the latest company to embrace digital assets after Tesla recently invested $1.5 billion in bitcoin while Twitter is considering adding it to its balance sheet.
- Visa Inc., Mastercard’s rival, said it wouldn’t resist adding digital currencies to its network if they become recognized as means of exchange.
- Mastercard will prioritize consumer protection and compliance in digital currency transactions.
- The company has already partnered with some of the biggest cryptocurrency firms, such as Wirex and Bitpay, but requires digital currencies to be converted into fiat currencies before processing transactions on its network.
- Mastercard’s support for digital assets will allow more merchants to accept crypto and eliminate inefficiencies in transactions.
Mastercard stock is currently gaining. MA: NYSE is up 1.73% on premarket.