Friday, September 30

Any Mastercard customer can offer services with bitcoin

Key facts:
  • Wallets, credit and debit cards and loyalty points may be offered.

  • Bakkt will be the one that provides the cryptocurrency services to which they are registered.

The multinational financial services company, MasterCard, would be about to give a boost to the ecosystem of cryptocurrencies. As revealed CNBC, the company would announce that any of the banks and merchants registered in its payment network will be able to integrate crypto assets into their products.

According need In the middle, there is talk of bitcoin (BTC) digital wallets, credit and debit cards that make money in cryptocurrencies and allow you to spend digital assets. Loyalty programs also stand out, where airline and hotel points can be converted into BTC.

To achieve this, the payment network is associated with Bakkt, the company dedicated to the cryptocurrency ecosystem and which will now be the provider of purchase, sale and custody services for those who register.

“We want to offer all of our partners the ability to more easily add encryption services to whatever they are doing. Our partners, whether they are banks, fintechs or merchants, can offer their clients the ability to buy, sell and hold cryptocurrencies through an integration with the Baktt platform, “said Sherri Haymond, Executive Vice President of Digital Partnerships at Mastercard. CNBC.

To clarify, merchants and restaurants can offer rewards in bitcoins, rather than traditional points, according to Bakkt CEO Gavin Michael. He noted that existing points can be converted to BTC at rates set by participating companies, “Which gives customers the ability to get a return,” he said.

We are lowering the barriers to entry, allowing people to take something like their reward points and exchange them for crypto. It’s an easy way to get started because you’re not using cash, you’re putting something that is a dormant asset on your balance sheet, and we’re letting you put it to work.

Gavin Michael, CEO of Bakkt.

What does this ad mean? In practical terms, an expansion in the way that customers in the United States (US) can earn and spend BTC and other cryptocurrencies, knowing that MasterCard is the company that manages one of the most important global payments networks in the world.

Does MasterCard take advantage of the new growth of BTC?

MasterCard’s announcement comes just as the market-leading cryptocurrency again surpassed its all-time high a few days ago and at a time when the US regulator approved two exchange-traded bitcoin futures funds (ETFs), for the first time.

This interest has led MasterCard clients (especially businesses) to request help from the network to provide cryptocurrency services, in line with Haymond, who clarifies that with the opening to the emerging market, banks can keep their clients on their platforms. , instead of the dollars migrating to the exchanges.

According to CNBC, the announcement of MasterCard and Bakkt is scheduled for this Monday afternoon, at the annual conference Money20/20, to be held in Las Vegas, Nevada.

MasterCard and its relationship with bitcoin

For those who know the relationship between bitcoin and MasterCard, this announcement is not surprising. It is known that it is a company dedicated to the centralized services of traditional banks that has looked favorably upon the emerging market.

For example, last month, the company indicated that, in order to increase its presence in the ecosystem, it acquired the cryptocurrency intelligence company, CipherTrace, as we reported in CriptoNoticias.

In a post, Mastercard said that with this move, it hopes to expand its capabilities in the field of digital assets. Negotiation terms were not disclosed and they plan to close the deal before the end of the year.

And a little earlier, it announced the formation of an alliance to improve its card program for banks, wallets and exchanges of bitcoin and other cryptocurrencies. It was a partnership with Uphold, Bitpay, Evolve Bank & Trust, Circle and Paxos Trust Company, who will collaborate to simplify the conversion of cryptocurrencies to national money.