- Cryptocurrencies have divided the world
- Payment companies contribute to ensuring security
- The trust factor
Mastercard has been supporting cryptocurrencies for several years. However, according to the company’s experts, this relatively new means of payment can only truly develop when its security is ensured. In line with this idea, Mastercard Inc. has announced the acquisition of CipherTrace, a startup in the area of blockchain analytics that offers tools and solutions designed to prevent illegal crypto transactions.
Nowadays, cryptocurrencies are supported on an international level: El Salvador has declared Bitcoin legal tender, while many transnational corporations, including Microsoft, Whole Foods, Home Depot, and others accept cryptos as a means of payment.
On the other hand, many other countries have banned cryptocurrencies. China needs to get rid of Bitcoin to support digital RMB, Egypt uses religion as leverage, and Russia does not know what to do with cryptos at all.
Leading financial experts are also divided on this issue. Some of them regard cryptocurrencies as financial pyramids and even label them junk, while others ardently support this new technology.
The main arguments of the opponents are the high volatility of digital assets, no government support, and lack of knowledge. The most critical issue is the security risks of crypto transactions. Even though it was believed that blockchain cannot be hacked, it has been proved otherwise.
Mastercard experts believe that certain security loopholes do not allow users to feel confident about the cryptocurrency payment system.
By addressing these issues, it would be possible to change the entire paradigm of financial transactions by making them fast, agile, and secure. Major payment companies, such as Mastercard, Visa Inc. V, PayPal Holdings, Inc. PYPL Square, Inc. SQ, and Western Union, have already recognized that and embraced cryptocurrencies.
Leading payment services with famous brands support cryptocurrency and help it earn the trust of their customers. If crypto transactions become more secure, they will be adopted much faster and accepted all over the world.
The acquisition of CipherTrace will be the crucial factor contributing to the adoption of cryptocurrency transactions. Mastercard strongly supports the use of e-currencies. It has cooperated with Support, Gemini, and BitPay to create crypto cards, new platforms for testing and supporting the Central Bank digital currencies, programs that promote the broad use of blockchain and NFTs, as well as the opportunities to circulate selected stable coins using its network.
Visa has been the predecessor of Mastercard in terms of cryptocurrency use. The company has stated that its customers have already spent over 1 billion US dollars in cryptocurrency this year using Visa cards.
Investing in the security of crypto transactions means investing in the future. Those, who secure their position in the market, will be able to keep it subject to adequate service support and security.
Mastercard has decided to go the extra mile and has announced that it will buy Aiia, the open banking technology provider, to strengthen its position in the open banking market which is a revolution in traditional banking.