London, England, 4th Nov 2021,
- According to Victoria-Coins, Mastercard is anticipated to disclose that any of the hundreds of banks and millions of merchants on its payments network will soon be able to integrate cryptocurrencies into their goods.
- Bitcoin wallets, credit and debit cards that produce cryptocurrency rewards and allow digital assets to be spent, as well as loyalty programmes in which airline or hotel points may be converted to bitcoin, fall under this category.
- To that end, the payments network is cooperating with Bakkt; a cryptocurrency business recently spun off by Intercontinental Exchange, which will be the behind-the-scenes provider of custodial services for users who sign up, according to officials at the two companies.
Mastercard is exploring the crypto sphere
The cryptocurrency economy is set to grow.
As part of the payment network’s recent acceptance of digital currencies, Mastercard Inc. is making it easier for banks to provide cryptocurrency incentives on their credit and debit cards.
Victoria Coins broker Tony Nikolaou says that MasterCard’s new crypto solutions complement the company’s expanding involvement in the young digital asset market. Just last month, the corporation paid an unknown sum for the acquisition of Silicon Valley-based crypto-analytics firm Ciphertrace, stating in a statement that “digital assets have the capacity to redefine commerce.” MasterCard has already collaborated with fintech startup Uphold and crypto exchange Gemini to produce crypto credit cards, and it has also created platforms to assist countries in testing central bank digital currencies.
According to a statement released Monday, Mastercard has reached an agreement with Bakkt, a cryptocurrency startup that was split out from Intercontinental Exchange earlier this year. Mastercard will also make it easy for customers to spend their bitcoin rewards at the millions of shops on the company’s network as part of the adjustments. To that end, the payments network is collaborating with Bakkt; a cryptocurrency startup recently spun out by Intercontinental Exchange, which will be the behind-the-scenes supplier of custodial services for people who join up, according to officials at the two companies.
Sherri Haymond, Mastercard’s executive vice president of digital partnerships, commented in an interview, “We want to empower all of our partners to simply incorporate crypto services into whatever they’re doing. “Our partners, whether banks, fintech, or merchants, may give their customers the ability to acquire, trade, and store bitcoin by connecting to the Baktt platform.”
The impact of the move
Nikolaou says that the news might lead to a significant increase in the number of people earning and spending bitcoin and other cryptocurrencies in the United States. Mastercard, together with Visa, runs one of the most important global payment networks, having agreements in place with more than 20,000 financial institutions across the world. There are 2.8 billion Mastercards in circulation, according to the business.
This year, Bitcoin’s popularity has remained robust, with the original cryptocurrency reaching a new high of almost $60,000 this month. This month, US authorities allowed the fund sector to launch bitcoin-linked ETFs for the first time, and huge institutional investors, including bond giant Pimco said they were considering trading cryptocurrencies.
The cryptocurrency market has nearly tripled in value in the last year, reaching $2.7 trillion thanks to rising adoption from traditional financial institutions. The debut of the first bitcoin-linked exchange-traded fund in the United States last week sent bitcoin prices up about 20% to an all-time high of around $67,000.
According to Haymond, this enthusiasm has prompted Mastercard clients to seek assistance from the network in providing crypto services. She believes that by doing so, banks would be able to keep their customers on their own systems rather than transferring money to cryptocurrency exchanges.
Bakkt shares, which went public last week, increased by 234 per cent as a result of the announcement. According to Bakkt CEO Gavin Michael, the partnership means that, in addition to crypto wallets and credit cards for banks, retailers and restaurants will be able to provide bitcoin rewards instead of traditional points. Existing points may be traded for cryptocurrency at prices set by the participating companies, allowing consumers to profit, he said.
Mastercard is expected to announce that any of its hundreds of banks and millions of merchants will soon be able to include cryptocurrency into their products. The payments network is collaborating with Bakkt, a cryptocurrency company that Intercontinental Exchange just split off.
Source: Victoria Coins