Looks like not only the native blockchain and cryptocurrency companies are striving to create crypto-based credit cards. A big player from another side, banking giant Mastercard has recently received the right to own patent which allows managing the “blockchain currency.”
This move is getting everyone closer to spend their crypto in everyday life, for purchasing goods. The filing assumes that the individual that possesses a bank profile would obtain two separate bank accounts - one for managing fiats, and another for dealing with cryptos.
Mastercard offers somewhat a compromise for using crypto and underlines the biggest advantages and challenges of digital money in its document. Firstly, the financial titan admits that many users prefer crypto above fiat to pay for things due to privacy and heightened fraud protection. But along with that, users put themselves at a greater risk when they need to receive funds. Moreover, traditional transaction speed of fiat payments is below a minute in most of cases, while the crypto payment in the traditional store can take up to 15 minutes because of long confirmation/conversion time.
Another drawback of a current crypto is that payment methods have huge difference with fiat payments. Mastercard is convinced that their move will help adopt crypto more quickly which will dramatically increase the transaction speed. The company aims to merge traditional payment methods with blockchain to keep the advantages of decentralized technologies.
However, the patent does not mean anything specific and does not disclose the company’s plans about it. Nothing is said whether Mastercard is deploying a new blockchain system or not. The only evidence is the comment of Mastercard’s senior vice president for communications, Seth Eisen, who said in the email to CNBC that company is in a constant search for innovations and this step is only a part of the bigger plan.
It’s not the first step of the banking company in the direction of blockchain. It has reported two more patents last month. Some speculate that the company just wants to secure as many as possible of blockchain-related technologies and it does not necessarily mean that MC will develop a product in near future.