The adoption of cryptocurrencies is increasing rapidly, and traditional financial services platforms are trying to adapt to the changing financial ecosystem, in order to maintain their relevance and position in the industry.
Payment processor companies such as MasterCard and Visa intend to use their large customer base and international reach to attract government, public and private entities alike when testing CBDC or stablecoin projects.
Michael Maybach, CEO of MasterCard, revealed during MasterCard’s financial report announcement session , that the company is devising a new initiative to help startups and create a virtual testing platform for central banks.
The CEO of MasterCard stated: We must be in this space
According to Maybach, the cryptocurrency industry is still a relatively new market, and people are curious to know exactly how it works.
Mastercard plans to be the link that helps users understand use cases and impacts, says Maybach, who added:
What we think we’re doing is providing a perspective to the market as a multi-payment provider, we have to be in this space because people are looking for answers.
Maybach noted that MasterCard has experience in its field and is ready to provide central banks with all the services they need, especially with regard to the growing trend of CBDCs.
All of these countries have to make a trade-off between the current delivery of financial products and what the central bank digital currency is working on, whether that is through financial inclusion or cross-border payments.
We have experience with all of that.
On the issue of stablecoins, Maybach revealed that MasterCard will soon provide support for such transactions provided that issuers strictly adhere to financial regulations and ensure the safety of users.
Just a few weeks ago, MasterCard announced that it had partnered with Circle, the company behind the USDC cryptocurrency, to test USDC settlements across its platform.
MasterCard Merchants Accepting Cryptocurrencies:
With the growing interest of many institutional and individual investors in cryptocurrency, payment facilitators such as MasterCard have decided to support them to avoid losing their customers to competitors.
Earlier this year, the company revealed that it will start supporting several select cryptocurrencies, acknowledging that they have become a vital part of the payments sector.
The initiative will allow more than 900 million MasterCard users to spend their cryptocurrency on all supported MasterCard sellers.