Introduction
The future of cryptocurrency has many bright prospects, but several obstacles must be overcome before digital currency can reach its full potential. For example, the current lack of regulation is an essential barrier to widespread adoption. Regulators worldwide could decide to create a global framework that will govern cryptocurrency. But that seems unlikely in the near term. If you are planning to trade Bitcoin, you may consider using a reliable trading platform like Bitcoin Loophole.
Blockchain technology
Mastercard is exploring the use of blockchain technology to improve consumer operations. While this technology is still new, the company has already made strides in the field. The company has started building a blockchain service that can scale to support its entire network. In addition, it has partnered with enterprise blockchain technology company R3 on a B2B payments project.
Mastercard has filed for more than 30 patents related to blockchain technology. One patent application focuses on a blockchain-based payment system that promises to make payments to merchants instantaneous. It also promises fast tracking for customers and secure verification of payments. Another patent application describes a method for securely verifying payment card information using the public blockchain.
Privately-issued cryptocurrencies
Privately-issued cryptocurrencies are digital tokens that circulate as media of exchange. While not backed by any government, private cryptocurrencies are stable and can coexist with government-issued money. While the government has yet to regulate these digital assets, it is looking to define and regulate cryptocurrencies as they exist today. In India, for instance, the government has called all private cryptocurrencies not issued by the government. Many other exchanges, such as Bitstamp and Kraken, are available to trade on. Still, they are less prevalent than Coinbase because they don’t offer as much support or security as Coinbase does.
Central bank digital currencies
Central bank digital currencies (CBDCs) are digital assets backed by central banks. In the United States, money has been booked and transferred digitally for many years. For example, commercial bank reserve balances at the Federal Reserve are digital. Many people have also been paying their bills online with funds in their bank accounts.
Although central bank digital wallets offer advantages over traditional bank accounts, there are some downsides. One of these downsides is the risk that a central bank could take over credit allocation. Another potential risk is that a central bank retail payment system could stifle private innovation in the payment system.
Apple Pay
As Apple continues to dominate the mobile payments industry, MasterCard is looking for ways to counter its success. The company has invested in multi-faceted PR, advertising, and social media campaigns. As a result, it has controlled the share of voice compared to competitors during launch week and several weeks after. The company has also interviewed 100 executives to discuss the new initiative and has activated one million MasterCard cards within 72 hours of Apple’s launch.
Apple’s Apple Pay service uses advanced payment security developed by MasterCard. The iPhone 6 Plus was the first device to feature this capability. MasterCard worked with a PR agency to launch a digital press kit, and executives traveled to major cities to announce the new feature. The company also offered a special “Priceless Surprise” to iPhone buyers to promote Apple Pay. So far, nearly 100,000 surprises have been given out.
Regulation
The Chief Financial Officer of Mastercard has confirmed that the company is implementing cryptocurrency products and plans to expand into other crypto environments. He says that the company has successfully implemented its crypto strategy since the emergence of these environments and plans to continue. He outlines his company’s plans to develop products in three key crypto areas: digital currencies, stablecoins, and central bank digital currencies.
The upcoming deal between Mastercard and Bakkt, which has begun trading on the New York Stock Exchange, could significantly expand the availability of cryptocurrencies. With over 2.8 billion active Mastercard cards and 22,000 banks on its network, the company has extensive resources and expertise to expand access to cryptocurrencies.
Conclusion
The future of cryptocurrency is bright but also fraught with risks. Regulators worldwide are trying to develop a common framework for crypto regulation. While it is unlikely that this will happen in the short term, it is a welcome sign of progress. While the future of cryptocurrency remains uncertain, it will likely continue to evolve as policymakers wrestle with how to best protect the consumer.
As cryptocurrency’s popularity grows, it can become a valuable tool for everyday use. However, it is essential to remember that popularity alone does not guarantee financial success. Take, for example, the case of Uber, which had 91 million users but still failed to make a profit. Cryptocurrency can’t make you rich overnight, but it can be a convenient and safe way to buy and sell things.
