Are Cryptocurrencies Receiving the Support of Mastercard
As the overall acceptance and support of cryptocurrencies continues to broaden, it serves as a signal of a new era in finance. This move has been under the shadow of skepticism by larger financial institutions up until recently. With Mastercard’s official announcement of support for bitcoin, and other various cryptocurrencies in 2021, it’s easy to see how the future is evolving.
Raj Dhamodharan, the Vice President of Digital Asset and Blockchain Partnerships at Mastercard, wrote, “We are preparing right now for the future of crypto and payments, announcing that this year Mastercard will start supporting select cryptocurrencies directly on our network. This is a big change that will require a lot of work.” His statement continued, “We will be very thoughtful about which assets we support based on our principles for digital currencies, which focus on consumer protections and compliance.”
With Elon Musk, the CEO of Tesla, doing his part to promote cryptocurrencies on apps such as Twitter, he hopes to make the transition to bitcoin adoption much easier. Musk commented in a recent Clubhouse interview, that the lack of acceptance from current institutions plays a large role in preventing bitcoin and crypto from being a major global finance system. With the support of a titan of industry, such as Mastercard, will go great lengths in ushering in the new demand for overall crypto currency acceptance.
The multiple concerns surrounding cryptocurrencies are valid though, with experts warning that they carry significant risks. Cryptocurrency’s volatility, and crypto Dogecoin jokes put up red flags and are a cause for concern. This is especially vexing in regard to younger investors, who don’t completely understand the risks they’re taking on with the investment of entire life savings. Dogecoin is especially worrisome, as a growing Twitter and Reddit meme, carrying an online buzz that has yet to die down.
Other risks and limitations associated with various cryptocurrencies include lack of insurance and backing of regulated financial systems. Crypto could easily be stolen, with no protections or guarantees on getting it back in your digital wallets. However, despite all the risks, there is a draw to the idea of decentralized financial systems among investors. The ability to invest in something, with the potential of exponential growth in a short period of time has captivated the attention of young investors. Plus, for the earlier investors in bitcoin, a new generation of wealth was ushered in throughout the late 2010s, as the crypto skyrocketed.
Mastercard’s cryptocurrency support will serve to increase consumer trust in product and currency as it moves throughout the network. Cryptocurrencies allow the ability to move through systems without being exchanged for another currency, as is the process with the US Dollar, etc. – Crypto will be the end of all that, at least in some capacity. This will enable the acceptance of digital assets in a quicker fashion for the majority of merchants willing to accept it.