Sun. Nov 28th, 2021

Cryptocurrency was first created as an alternative to conventional financial institutions. Now, it has become quite mainstream that credit card company MasterCard, more than 50 years old, is offering its customers access to cryptocurrency digital wallets, cryptocurrency-branded debit and credit cards and even cryptocurrency-based loyalty reward programs. These tools are part of the partnership MasterCard Announcement With Bakkt on Monday, a platform for buying and selling digital assets like crypto.

Banks and financial institutions that offer MasterCard credit and debit cards can now enable customers to pay their balances and earn loyalty points through Bitcoin, a cryptocurrency that supports the Bakkt platform. As Part of MasterCard’s agreement with the speaker, Merchants including restaurants and retailers will be able to offer Bitcoin as an alternative to traditional loyalty points that credit cards often offer users. At the same time, these MasterCard customers will have the option to convert the prize points they already have into Bitcoin and store them in a Bakkt digital wallet.

This will give more than 2.8 billion MasterCard holders a potential on-ramp in the crypto investment world. However those who choose to convert or deposit reward points in crypto are still taking risks as the value of cryptocurrency is largely determined. Unstable crypto market, Making MasterCard offers a little easier and less difficult to take that risk than signing up separately For a crypto platform.

This is not MasterCard’s first cryptocurrency pursuit. There are already several MasterCard credit and debit cards available for those who want to use cryptocurrency. MasterCard Debit and Prepaid Card offered by the platforms Maintain And Bitpe Allows people to quickly convert their cryptocurrency holdings into traditional currencies, while a MasterCard credit card offered by a crypto company Gemini Allows customers to earn rewards in cryptocurrency based on their spending activity.

In September, MasterCard too Made Its first non-fungible token, or NFT, (An animated ball Credit card loyalty signed by soccer coach Jose Mourinho as part of the sweepstakes. Now, MasterCard’s decision to consolidate support for Bitcoin across its payment network means more people will not only be exposed to the cryptocurrency, but will be rewarded with it. MasterCard said the latest expansion would affect more than 20,000 financial institutions, including banks and credit unions that work with the company.

More information on when these new capabilities will be available to customers will be shared at a later date, according to MasterCard.

“As brands and merchants want to appeal to young consumers and see their transaction preferences, these new offers represent a unique opportunity to meet the growing demand for crypto, payment and rewards flexibility,” said Nancy Gordon, vice president of rewards and payments Bakkt. A Statement.

The announcement comes as credit card companies are slowly releasing some of their concerns about cryptocurrency and looking for ways to cash in on its growing popularity. In the first half of 2021, Visa customers spent more than $ 1 billion in cryptocurrencies with credit cards offered in partnership with the company. Three different crypto platforms: Circles, BlockFi and Coinbase. Other credit companies have hinted that they may soon start offering cryptocurrency. American Express late last year Investment On a cryptocurrency trading platform called FalconX; At the same time, Discover Financial, which operates Discover Cards, has begun hiring staff to build cryptocurrency capabilities.

Credit card companies are an example of traditional financial institutions that create more space for regular people to acquire and use crypto. In April, Coinbase: a platform for cryptocurrency trading – became the first Crypto companies go public – which effectively allows people to invest in cryptocurrencies without buying any specific currency. Bakkt, a platform that works with Mastercard, also went public earlier this month. And last week, the first cryptocurrency-linked exchange-traded fund, or ETF, which is a basket of securities tied to the future price of Bitcoin, Starting a business. Payment platforms such as PayPal, Venmo (which is owned by PayPal), and Square support all cryptocurrency-based transactions and Square Equal To consider Creating a bitcoin mining business is a way to use lots of computing power to create new bitcoins.

Another sign that cryptocurrency is here to stay is: growing investment in new fraud and security technologies to keep track of cryptocurrency-based credit card scams and crime. Unlike traditional currencies, digital assets like Bitcoin are not controlled or regulated by any one government and their cryptography makes it more difficult to track and reverse cryptocurrency-based transactions. For that reason, crypto is risky for theft and is embraced by money-smugglers. Just days before the announcement of the cryptocurrency expansion, MasterCard bought Sifertrace, A cryptocurrency Firm Supported by the Department of Homeland Security Which advertises itself as “the world’s first blockchain forensic team.” PayPal has also tried to hire cryptocurrency experts to focus Security issues like money laundering And terrorism.

Cryptocurrency has become so popular among criminals that the U.S. Martial Services, the government branch that manages confiscated assets, A cryptocurrency has been rented The bank will preserve all seized cryptocurrencies after a criminal investigation. These developments are a reminder that credit card companies are trying to make these digital assets more popular among traditional credit card holders, bringing cryptocurrency risk.

Yet, most cryptocurrency holders do not seem to be complaining that some large financial services are slowly becoming more friendly to crypto. After all, it is difficult to ignore the fact that the increasing efforts of mainstream cryptocurrencies have a beneficial effect on price growth. They already have cryptocurrency investments.

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