Major credit card firms, MasterCard and Visa, have released strong statements about digital currencies this week. However, the two companies do not appear to be planning on creating their own crypto.
This week, Visa reiterated its connections with significant crypto firms, including Anchorage, Fold, and Coinbase. On the other hand, MasterCard has revealed its plans to expand its cryptocurrency credit card partnerships, starting with WireX fintech company.
Today, Mastercard announced the expansion of its #cryptocurrency program. This move makes it simpler and faster for partners to bring secure, compliant payment cards to market and easier for consumers to hold and activate cryptocurrencies. https://t.co/6xhiRk1YTM pic.twitter.com/2l8YypSMFp
— Mastercard News (@MastercardNews) July 20, 2020
The supportive cryptocurrency point of view of the two credit card companies, begs the question: will any of the two firms become more ambitious and move on from crypto card partnerships, and develop their cryptocurrency?
MasterCard and Visa explore blockchain technology
MasterCard and Visa both appear to be taking into account blockchain technology, at least hypothetically. Notably, MasterCard alone has filed more than 80 blockchain-related patents, and Visa on the other hand has filed more than 24 blockchain patents. For instance, Visa submitted a patent for a virtual asset that could be based on Ethereum blockchain.
In the meantime, MasterCard has filed for a patent that can be utilized to develop new blockchain infrastructures, with multi-coin support. Nonetheless, an comprehensive analysis of the patents narrates how firms could manage virtual assets or apply digital ledger technology. The patents do not point at MasterCard and Visa are creating cryptos like BTC or ETH. However, there are no assurances the patents will be put into work; the two firms govern the intellectual activity for the tech outlined by the patents
Crypto regulations could hinder roll-out
Additionally, the strict crypto policing structure could also prevent MasterCard and Visa from rolling out a cryptocurrency. Although the two firms are in an excellent position to steer through the regulatory procedures, it might still take time.
The fact that MasterCard and Visa have stringent principles regarding regulatory conformity; the two firms would put a great deal of effort before issuing crypto to the public. Notably, the two firms abandoned the Facebook Libra project due to regulatory concerns back in 2019.
