Banks have notoriously been steadfast in their objection to cryptocurrencies, and this is for a superb motive. The peer-to-peer economic market of virtual currencies is harmful to the current financial monopoly held by financial intuitions. That is why it became surprising when an executive at MasterCard said that the credit card issuer was open to the overall use of cryptocurrency. But, there may be a major catch to this declaration.
Master card has put lots of time and effort into blockchain technology, but they’re not precisely a fan of digital currencies like Bitcoin. This was clearly evident whilst master card and Visa classified the buying of cryptocurrency as a cash advance instead of a purchase.
The end result turned into the use of credit cards to buy for Bitcoin and other cryptocurrencies became more pricey. Exchanges charged a higher rate, and customers began accruing interest from the moment they used a card.
It looks like the financial juggernaut has now changed their pace, but the reality is that they’re not. Ari Sarker says that the enterprise is “very happy” to think helping the use of cryptocurrencies, but only as long as the ones digital currencies are issued by central banks.
Right now, the financial intuition is running a pilot program in Japan and Singapore. Customers can cash out of Bitcoin and different cryptocurrencies onto their cards. But, Sarker says that the program is not a crypto trading one and that strict controls, consisting of anti-money laundering and KYC, are in place.
This motion by master card must come as no wonder. Banks need to get their mitts on their percentage of the vast amount of sales flowing through the crypto sphere, however, they need to achieve this whilst exercising full control. The preference to help cryptocurrencies issued by means of central banks.