MasterCard in its new FUD is open to the government created cryptocurrency while calling the rest junk. Additionally, it allows the cash out of bitcoins onto its credit card but follows strict KYC and AML measures.
MasterCard: Open to Govt. created cryptocurrency, rest are Junk
Today, MasterCard, the financial giant revealed that it is receptive to using the digital currencies that are issued by the central bank, in future.
As stated by Ari Sarker, the Senior executive at MasterCard:
“If governments look to create national digital currency we’d be very happy to look at those in a more favourable way [as compared to cryptocurrencies in general].”
However, the company is not at all interest in the cryptocurrencies. Having put in a lot of effort and time with the blockchain technology, it condemns bitcoin and other cryptocurrencies.
He further explained:
“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.”
Banks have always been firm in their stance on cryptocurrencies and the same opposition is evident in MasterCard and Visa’s interest in digital currencies as stated by the credit card giant:
“Over the past few weeks, we have clarified to acquirers – or the merchant’s bank – the right transaction or merchant category code to use for these type of transactions (cryptocurrency purchases). This provides a consistent view of such purchases for both merchants and issuers.”
Due to higher fees charged by the exchanges, the purchase of bitcoin among other cryptocurrencies through credit cards have become expensive that also results in accrued interest.
Strict AML & KYC measure applies
MasterCard is currently running a bitcoin pilot program in Singapore and Japan. Though the customers can cash out their bitcoins through their cards, the program applies strict controlling measures like KYC and AML.
Last year, the CEO of MasterCard, Ajay Banga said that they would find a way to work with the state-owned digital currencies while calling other cryptos junk.
Given the popularity and revenue intensive the digital currency market is, it is no surprise that MasterCard also wants a piece of this lucrative market. However, just like other financial institutions, the credit card giant wants full control over them, hence showing interest towards government created cryptocurrencies.
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.