According to a new patent published on October 25th Mastercard, a US multinational financial services corporation plans to apply principles and regulations of fractional reserve banking to cryptocurrency.
As indicated by the document which was published by the US patent and trademark office (USPTP), the payment processor has intentions to enable the traders to associates with ”blockchain currencies” through a new approach of simultaneous crypto and fiat storage.
Mastercard has provided a mix of public positions on cryptocurrency in the past few years, this month winning a further blockchain – related patent while signaling alongside Visa which might characterize cryptocurrency and ICOs as high risk.
In its new document, the organization seems to wish to apply regulations and policy of the banking fiat banking system which it considers “are specially designed and configured to safely store and protect consumer and merchant information and credentials.”
The patent filing proceeds on:
“[…]The use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralized blockchain while still maintaining the security of account information and provide a strong defense against fraud and theft.”
The idea may surprise some commentators as fractional reserve banking where there is no evidence that a lender has the funds which correspond to clients promised holding which already has a direct solution.
The previous main reserve bank for tether, Noble Bank, notionally pegged to the US dollars had stated that it didn’t utilize fractional reserve and could prove it has one dollar for each USDT token, even though the stablecoin project has avoided going through an open audit. According to a new patent published on October 25th Mastercard, a US multinational financial services corporation plans to apply principles and regulations of fractional reserve banking to cryptocurrency.