Cryptocurrencies are the next evolution in money. Cryptocurrencies can be now be used as an actual currency for purchasing commodities. Now, Mastercard is seeking a patent for fractional reserve management of blockchain assets.
The opinion of Mastercard on blockchain technology has since evolved into something “good.” After a few years of maintaining the opinion that cryptocurrencies are directly tied in with criminal activity, Mastercard has taken a turn. Now, instead of attacking crypto, they are working on establishing a patent that would provide them with fractional reserve management of blockchain assets.
Mastercard’s Financial Reserve Blockchain
The patent Mastercard is seeking will be a system which will simultaneously track crypto assets and fiat assets. Essentially, it’s a web wallet with a combination of cryptocurrency and fiat accounts. The patent essentially describes a cryptocurrency credit card network.
With cryptocurrency things are different and far simpler
When you are using a secure cryptocurrency payment platform, transactions are done instantly and move directly from the buyer to the merchant with personal or account information being transferred. Even though this type of banking has had a poor reputation in the past, Mastercard stands to truly make a difference in the crypto economy with the millions of current clients being allowed to conduct crypto payments.
In this respect, despite the problems associated with fractional reserves, Mastercard could potentially make a massive contribution to the crypto economy by enabling millions of existing clients to accept cryptocurrency payments. However, patents take time to process so we will have to see how this develops.