Mastercard recently introduced a new patent designed to manage fractional reserves of blockchain currency. Thanks to this technology, Mastercard users could be given an ability to store, receive and transfer Bitcoin and other cryptocurrencies with the help of their credit card. While full details of the technology aren’t yet available, the company claims that it might one day allow people to purchase goods and services by using Bitcoin.
The patent was originally won by Mastercard on this Tuesday and Seth Eisen, company’s senior VP for comms confirmed said the following about the patent:
“We’re consistently looking at ways to bring new thinking and new innovations to market to create value for us and our customers and cardholders. Patent applications are part of that process, taking steps to protect the company’s intellectual property, whether or not the idea ever comes to market.”
While no product is available as of yet, this should, according to the document, enable Mastercard to introduce currencies that aren’t declared by government as legal tenders. The full document of the patent was published by the US Patent and Trademark office and can be reviewed here.
The document initially explains that while people value security and anonymity which comes with crypto transactions, they sacrifice transaction speeds because of those. While transactions do take several minutes to complete at times of high network congestion, they are more reliable than banking transactions. At times they can be even faster, as banks tend to have specific times of day when they “clear” their books and process transactions in bulk.
Still, most companies prefer the security (which is rather enforced stability) of fiat and banks over crypto.
“Many entities, particularly merchants, retailers, service providers, and other purveyors of goods and services, may be wary of accepting blockchain currency for products and participating in blockchain transactions,” the document concluded.
Fundstrat Global Advisors managing partner and head of research Tom Lee went on CNBC’s Fast Money and explained that this is good news for digital currency.
“It’s really validating the idea that digital money, or blockchain-based money, is a valid form of transaction,” explains Lee. Lee feels that this initiative by Mastercard suggest that various “smart money” entities are taking a much more positive view on digital money, or blockchain based money. Ultimately, Lee feels that this is a clear sign that these big financial companies are becoming more interested in transactions with Bitcoin and cryptocurrencies. He isn’t wrong here, as having a giant like Mastercard take interest into providing cryptocurrency payment options signals that “real world” entities and service providers are not so wary of crypto after all. This also implies that we could see much higher adoption, demand and ultimately prices for assets that are available on the crypto market in the near future.
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