Banks have long been known to dislike cryptocurrencies, and everybody has a pretty good idea why. They don’t like the freedom of peer-to-peer transactions, the lack of control and just any challenge to their monopolistic position in general. That’s why any statement about cryptocurrencies coming from MasterCard employee is received as a surprise.
Mastercard has put a lot of time and effort into blockchain technology, but they’re not exactly fans of virtual currencies like Bitcoin. This was clearly evident when Mastercard and Visa classified the buying of cryptocurrency as a cash advance instead of a purchase. As a result, it was very impractical to use credit cards to buy Bitcoin due to high fees and interest.
Now it seemed for a moment that the monetary giant has changed its mind, but in reality, it had not. In an Interview with Financial Times MasterCard executive, Ari Sark, noted that the company only considers using cryptocurrencies as long as they are issued by central banks. The cryptocurrencies also have to be regulated and not anonymous in order to be qualified to be used.
Right now, a test program is being run by the company in Japan and Singapore. The participants can buy Bitcoins onto their cards, however, it’s not a crypto trading program. KYC and anti-money laundering controls are enforced.
In conclusion, it’s obvious that banks want to get their share of crypto profits without losing full control of the situation.