Using MasterCard To Manage Your Crypto-Currencies
A world where you can use your crypto-currencies everywhere that has a MasterCard logo may not be just a dream anymore. MasterCard, the payment processor giant, recently made an interesting patent application: It was about a network infrastructure to manage the fractional reserves of the crypto-currencies. Simply put, MasterCard creates a Fiat currency pool that is supported by users’ crypto-currencies and enables digital currencies to be used in the daily life without changing the existing POS and payment infrastructure.
The patent application mentions that it takes about 10 minutes to pay with crypto-currencies and since ordinary consumers will not agree to wait that long, there is a need to develop a hybrid system that supports Fiat and crypto-currencies together. The system will create a personal Fiat currency pool for each user that is backed by the crypto-currencies of that user. After payment is made using this pool, the relevant amount will be taken from the crypto-balance. This is some sort of a debit card system but works under the MasterCard network, not Maestro.
Although MasterCard’s patent application is exciting, it is worth mentioning that this system is only for crypto-assets backed by central banks. So MasterCard does not provide direct support for blockchains: You can benefit from this technology only if you store your crypto-currencies in a central bank.
Wait, Crypto-Currencies In Central Banks?
Storing your crypto assets in central banks is also not a dream anymore: Controlling digital assets worth about $ 150 billion, Coinbase is trying to get a federal bank license for the last month. Binance, another exchange giant, bought a 5% stake in Malta-based Founders Bank. It is known that this bank is about to get an EU banking license so it would not be wrong to say that you can soon begin to manage your crypto assets on the Binance exchange like a traditional bank. That’s not all: Did you know that the Litecoin Foundation has bought 9.9% of the German-based WEG Bank AG? One of the requirements of the procurement agreement was that the bank starting to provide support for LTC – when this happens, crypto users may start to benefit from hundreds of ATMs across Europe. Moreover, when we consider MasterCard’s patent application requirements, there is no need to change the current system: You can continue to use your regular banking cards. Apparently, the age of the crypto banks is coming close, and payment processors like MasterCard are already trying to keep up with the latest developments. However, how these developments fit into the philosophy of crypto-currencies is a question that needs to be asked.