PURCHASE, N.Y. — Mastercard announced that they will begin supporting select cryptocurrencies on their network this year.
The financial services corporation said they are “preparing right now for the future”, when it comes to crypto and payments.
Not all cryptocurrencies will be supported by the company. Some digital assets will require tighter compliance measures to meet Mastercard’s requirements.
“We strongly believe that for digital currencies to become trusted payment instruments for consumers or businesses, it is essential that they offer stability, regulatory compliance and consumer protections,” a press release from October said.
Mastercard outlined four keys that must be met for a cryptocurrency to be supported on their network:
- Consumer protections
- Strict compliance protocols
- Follow local laws and regulations
- Be used as payment, not investment
The company has already teamed up with Wirex and BitPay for customers to convert cryptocurrency transactions to traditional currencies, but they are looking to move the transactions to their own network allowing for payment and acceptance of cryptocurrency through Mastercard.
Mastercard’s announcement comes days after electric car manufacturer Tesla announced the purchase of $1.5 billion in Bitcoin in their annual report.
The report states they have updated their investment policy to allow for diversification on returns.
In the same report, Tesla announced they would be accepting Bitcoin as a form of payment in the “near future, subject to applicable laws and initially on a limited basis, which we may or may not liquidate upon receipt.”