Mastercard Wins a Patent to Link Cryptocurrency With Fiat Accounts

cryptocurrency

#1

https://www.ccn.com/mastercard-wins-a-patent-to-link-cryptocurrency-with-fiat-accounts/amp/

Mastercard has been granted a patent that grants it rights for a method for “managing fractional reserves of blockchain currency.”

With Mastercard’s latest patent, we’re getting closer to using our cryptocurrency credit cards to purchase goods. According to the filing, the method addresses the storing of both fiat and cryptocurrencies under one profile. This means, as a user, you’d have two linked accounts with your bank — one for your fiat wealth, and one for crypto.

Mastercard Believes Cryptocurrencies’ Biggest Advantages are Their Biggest Challenges

In the document, Mastercard justifies the patent explaining how users have increasingly preferred cryptocurrencies to fiat currencies due to its anonymity. The company believes some consumers have chosen digital currencies in an effort to prevent fraud.

However, Mastercard argues cryptocurrencies ensure very little protection to the receivers of funds. While traditional fiat payments are processed in a matter of seconds, crypto transactions can sometimes take as long as ten minutes. If you’re trying to pay with cryptocurrencies at a retail store, for example, that delayed confirmation can be an issue.

Additional, the document states people are taken aback by cryptocurrencies and the blockchain because they’re so different from traditional payment methods. For that reason, combining systems already in place for fiat currencies with the digital assets could potentially promote adoption while retaining the benefits of decentralization.

Fruition?
While in theory, it all makes sense, as it usually happens with patents, it’s not completely clear what Mastercard intends to do. There is no mention of whether this system would be supported by a blockchain of its own, for instance.

In an email to CNBC, Seth Eisen, Mastercard’s senior vice president for communications, said:

“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.”

Apart from its convenience to masses, combining traditional payment systems with cryptocurrencies will help combat fraud, Mastercard explained. Hypothetically, the system would use existing fraud and risk algorithms to assess the legitimacy of cryptocurrency transactions while giving the digital assets permission to access the information they couldn’t before — such as credit bureau data, historical fiat transaction data, or demographic information.

This is just another patent added to Mastercard’s long list of blockchain-based solutions. Just last month, CCN reported two patents for the banking company — one for anonymous blockchain transactions, and another for a blockchain travel itinerary bidding system. As Eisen stated, these could be just Mastercard’s efforts to secure as many systems and processes as possible without any real plans to develop them in the near future.


#2

Not sure if this is under the right category , feel free to correct


#3

How can you monopolise such a simple idea?


#4

Another JP Morgan staked company, seems they are making their moves.

Be afraid :stuck_out_tongue:

Stay Fishy


#5

PundiX better get busy…


#6

Update:


#7

bitpay has been a savior for me with the bitpay visa… I designed an app that links my solar mining GUI algo with the bitpay wallet, I don’t personally mine bitcoin but a bunch of people use my app. What I find funny is how these scammy shit coins like TenX that have been promising a visa/mastercard for quite a while and not delivering… Vitalik even has his name as a dev on TenX but if you read the tenx bitcoin talk thread you can get an idea that it is a scam-ish project…smh


#8

Yeah there’s so many that promised this. Many with good intentions but couldn’t open up the payment channels to make it happen. I use bitpay card on a daily basis as well. I think we have such high opinion of it because it’s really our only option. But, when service is down and we have to find out why from a damn tweet :joy:. It’s easily to realize how far it really has to go. That Georgia service number is always good for a laugh too.


#9

You might be right about that… I’ve seen maybe 8-10 other projects that say coming soon but nothing yet.