Mastercard Is Not Interested In Bitcoin, But Sees Promise In Blockchain

Blockchain, News | February 20, 2018 By:

Mastercard chief financial officer Martina Hund-Mejean said the company is not interested in enabling bitcoin transactions on its network.

In an interview with Arabian Business, Hund-Mejean said the company is not going to work with bitcoin because it is unregulated, not transparent, and it doesn’t meet any regulatory requirements from a money laundering or know-your-customer point of view.

“If a currency were to be a fiat, digital, we’d be more than happy to enable it on our network,” Hund-Mejean said. “It takes us about 24 hours to enable a new currency on our network. But it has to be fiat, backed by a government, and transparent.”

MasterCard recently re-classified customers’ cryptocurrency purchases as “cash advances,” leading to an extra five percent fee on purchases of cryptocurrencies made via credit card.

Mastercard, however, is optimistic about the promise of blockchain technology. Hund-Mejean said they definitely see a place for the blockchain. But in terms of instant payments on it, it’s light years away.

“Parts of the blockchain can be utilized in the payments process, but that doesn’t mean you’ll be doing settlement any time soon,” she added.