A major opposition to the cryptocurrencies has been banks due to their own reasons which some view as valid. The main reason why banks have been this way is the fact that the peer-to-peer digital lending will give consumers a variety of options to such from due to the monopoly that is dictated by them as financial institutions.
MasterCard is believed to have dedicated a lot of their time and resources on blockchain technology. This will also make the company position itself as a competitive company as it enters the blockchain market.
MasterCard willing to support crypto’s as long as they supported
MasterCard co-president for the Asia-Pacific region Mr. Ari Sarkar recently said that the company was open to exploring cryptocurrencies created as long as they are backed.
“If governments look to create national digital currency we’d be very happy to look at those in a more favorable way compared to existing cryptocurrencies,” said Sarkar to the financial times.
“So long as it’s backed by a regulator and it is not anonymous, it is meeting all the regulatory requirements,” he continued, “I think that would be of greater interest for us to explore.”
Many countries have failed in the idea of implementing and coming up with ways of creating a government-backed cryptocurrency. Only a few countries have succeeded in their quest of creating such initiatives and these have opened their doors to many investors.
It is interesting to note that central banks and governments in China, England, India, Russia, Israel, Dubai and Estonia have announced plans of launching their own cryptocurrencies. The only country that has been able to create its own cryptocurrency is Venezuela.
Mr. Sarkar also said that MasterCard was running a pilot enabling customer to see on how to cash out of bitcoin to MasterCard.
“We are not operating trading of bitcoin through the MasterCard network,” Mr. Sarkar said. “The pilot is a toe in the water; we’re fully cognisant of the reputational risk.”
This pilot project is already being tested in Singapore and Japan but can be gauged that it has not yet reached full scale. Another spokesperson from MasterCard refused to give full details about cryptocurrencies or the bitcoin pilot.
Despite the MasterCard’s openness towards cryptocurrencies, it has launched its own blockchain initiative with MasterCard Labs which has 3 blockchain APIs.
MasterCard said the following statement with regards to the launch blockchain-related patents:
“Accordingly, the use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralized blockchain while still maintaining security of account information and provide a strong defense against fraud and theft.”
MasterCard indeed intends to win the technological race with its blockchain APIs and other patents. Analysts are speculating that blockchain that will be used will be integrated with the family infrastructure.
It will be interesting to see how things develop in the near future and how many people will embrace the new advancement from MasterCard.