MASTERCARD WILL BEGIN TO USE BLOCKCHAIN FOR INTERNATIONAL FIAT MONEY PAYMENTS
Distributed accounting technologies are increasingly achieving better positioning in the financial system, being supported by important companies of international stature. In this sense, the most emblematic adoption of the week has been that of Mastercard, a credit and debit card company that will start using blockchain for fiat money transactions.
Reported by the company and the media this past Friday, Mastercard intends to train its own blockchain version so that its business customers can make payments to other entities without having to pass their plastic cards. In this way, banks and retailers will enjoy a new, quicker and safer settlement alternative.
The main objective of the company with this new blockchain is to boost the international payments of the different companies affiliated to the platform that make life in the B2B space (bussiness to business) and that form some 22,000 institutions. All this with a view to improving the security, transparency, privacy and audibility of the network at lower costs.
The measure has become a union between the characteristics of Mastercard and those of distributed accounting technologies to complement its capabilities, differing from other adoptions that have made business giants in the payment platforms sector, as is the recent case of IBM.
This technology multinational has also launched its own blockchain payment process for a group of South Pacific banking entities, which are IBM customers. This distributed network has the peculiarity that it only transmits monetary fund in format Lumens, a virtual currency that has been created by the Stellar foundation.
In this sense, Mastercard will differentiate itself from other proposals of the market because it will not work with criptomonedas due to the legal challenges that represent an adoption of these financial tools. Therefore, the private blockchain of this company will only work transferring fiat money
Although it is not yet enabled the MasterCard blockchain is known to be private format, so you will need a special invitation to be used. Also, the product API is enabled on the Mastercard Developers platform.
On the other hand, the company also stated that it does not consider Bitcoin and the other cryptographic currencies a threat to credit cards since the services offered by these financial companies are "safer"
Mastercard already owns 35 patents related to distributed technologies and has also invested in the Digital Currency Group. Visa, its most immediate competition in the world of credit cards, is also experimenting with blockchain from the hand of the Startup Chain to develop a platform tailored to their needs. Undoubtedly an industry increasingly committed to disruptive technologies.