Mastercard to Permit Transactions in Cryptocurrencies

Mastercard will soon be adding cryptocurrency to its network. Mastercard will soon be permitting only ‘stable coins’ which are related to flat currencies. The company plans to permit its cardholders to perform their transactions via cryptocurrencies.

Mastercard plans to permit customers to use a few cryptocurrencies via its network later this year, in collaboration with a few corporates who have accepted digital tokens. The firm already allows its cardholders to transact digital assets via external platforms. However, the firm now intends to support crypto partners by permitting various merchants in acknowledging digital tokens. With this move, there will be less room for inefficiencies as consumers and merchants will need not have to juggle with back and forth conversions between crypto and traditional for making purchases.

Mastercard has also partnered with a few of the largest cryptocurrency firms which include BitPay and Wirex. The company has mentioned that this move is in no way suggesting that a Mastercard holder should start using cryptocurrencies.

The firm plans to introduce various other currencies; the company also claims to have been in talks with various banks across the world. This move is expected to increase possibilities concerning merchants and shoppers, permitting them to transact via a new payment mode.

This initiative might also help merchants in bringing new customers who are already shifting towards digitised payments. It will also help sellers in building loyalty with their existing customers who intend to use this additional option. With this option, customers will also be able to transact money in a new way. The firm has also mentioned that not all cryptocurrencies will be added under the new policy.

For any clarifications/feedback on the topic, please contact the writer at bhavana.pn@cleartax.in

You May Also Like

EPFO lowers the interest rate on PF deposits to 8.5% for FY 2019-20

The Employees’ Provident Fund Organisation (EPFO) has notified the interest rate for…

Pensioners Who Opted for Commutation To Receive Higher Pension

According to a notification sent by the labour ministry dated 20 February…

Here’s What You Should Know About Overdraft Facility

The overdraft facility can be considered as a kind of a loan.…

Income Tax Not Applicable on Disability Pension for Defense Personnel

The Ministry of Defence has instructed its accounts department to withdraw the…