It is important for the crypto industry that we have major credit card institutions onside to facilitate the easy flow of bitcoin transactions. So it’s great news that the world’s leading credit card company, MasterCard, have just won a patent that could allow cryptocurrency transactions for their cardholders in the future.
In hot news that was reported by CNBC on Tuesday, MasterCard has won a patent that one day will be able to allow people to charge their purchases on their cards using bitcoin. The patent protects a method that would allow, “fractional reserves of blockchain currency.”
The future of bitcoin transactions
At this moment in time, MasterCard users can only pay for items using the local fiat currency of their home countries. The new patent could change all of this. MasterCard has stated that increased usage in blockchain currencies has changed the game because consumers do value the anonymity and security that crypto offers. The news is a turnaround regarding MasterCard’s previous attitude towards crypto.
The senior vice president for communications at MasterCard, Seth Eisen, outlined in a document to CNBC the growing importance of security and privacy for uses by saying, “While blockchain currencies can often provide such safety and security for the payer’s information, such security may be limited for payees, particularly due to the limitations of the blockchain.”
What he meant by the “limitations of blockchain” is how bitcoin transactions can still take 10-minutes to play out, as opposed to the rapid transaction times of traditional payments forms. He also went on to point out that there are other disadvantages to using cryptocurrencies, such as the need to improve storage and processing capability.
The delay in time for digital transactions is a major concern for both merchants and crypto users because we have to rely on the payer’s good faith that they are a valid user. The anonymous nature of crypto could also be a disadvantage to those accepting payments in crypto.
Speeding up crypto payments and transactions
The speed of bitcoin transactions is a major concern, with not just users, but also regarding retailers, service providers and merchants. Accepting bitcoin as a form of payment still scares a massive part of the retail market, which is where we could all benefit from a major player such as MasterCard getting involved.
The details of the patent and where MasterCard are going with this are still sketchy at best. If MasterCard decided to quickly implement the new method, it could help to speed up blockchain transactions by allowing their cardholders to pay for their goods instantly with their credit card in bitcoin.
Seth Eisen went on to tell CNBC that “We’re consistently looking at ways to bring new thinking and new innovations to market to create value for us and our customers and cardholders. Patent applications are part of that process, taking steps to protect the company’s intellectual property, whether or not the idea ever comes to market.”
Although it’s great news that MasterCard has won this patent to allow bitcoin transactions, only time will tell how quickly they want to implement the method to help speed up crypto transactions and allow their cardholders to buy in crypto.
I am very experienced writer/blogger who has been an active member of the cryptocurrency community for several years. I have experience writing for crypto news sites and proactively been involved in the startup of other ICO and crypto ventures over the course of the past four years.