Payments giant Mastercard, which has identified five critical areas that might help “convert cryptocurrencies into an everyday way to pay,” believes that cryptoassets have the ability to alter the financial infrastructure.
In a blog post published on Wednesday, Raj Dhamodharan, executive vice president of Digital Asset and Blockchain Products & Digital Partnerships at Mastercard, stated that in order to accomplish this, we must combine the best of technology, banking, fintech, and cryptocurrency.
According to Dhamodharan, it will “someday soon” be possible to use cryptocurrencies in the same way as contactless card payments. However, this will require advancements in at least five crucial areas.
First and foremost, crypto cards are required because they would serve as a link between the current banking system and the cryptocurrency market. The partnership with Gemini to introduce a credit card that offers incentives in cryptocurrencies to US customers stands out among the dozens of crypto card programs that Mastercard has announced.
Notably, Mastercard's competitor Visa has also unveiled a number of credit cards related to cryptocurrencies so far in 2019. To sell crypto debit cards in 40 different nations, with a focus on Europe, Latin America, and Asia, the company teamed up with FTX only last week.
“We’re excited to prioritize these core areas to give people more access to the crypto ecosystem and help it keep innovating and growing,” he concluded.
Furthermore, Mastercard stated that crypto firms should have a range of service providers. In order to “assist card issuers stay compliant with rules and assess the risk profile of crypto transactions,” the company claimed that they have expanded its advisory services to include cryptocurrency as well.
Making it simple for customers to exchange their cryptocurrency for fiat to make payments is the third important aspect. Companies can accomplish this by collaborating with a few elite crypto-focused businesses, such as Paxos and Circle.
According to Dhamodharan, the fourth crucial area is to include some cryptocurrencies on their network. “An essential approach to extend choice for customers is to integrate some Mastercard-approved digital assets into our networks, a plan we revealed last year that continues to progress forward,” he added.
Dhamodharan concluded by highlighting the value of NFTs and the Metaverse for enhancing user experience. The payment behemoth, according to him, is putting together alliances to support NFTs and the metaverse.
Mastercard and Coinbase collaborated in January to make purchasing NFTs as simple as “purchasing a T-shirt or coffee pods on an e-commerce site,” and the business is now aiming to expand those capabilities to an additional eight NFT markets, according to Dhamodharan.