Mastercard and Visa are no longer flirting with crypto, it looks like they are ready to take their relationships with digital currencies to the next level. Mastercard recently announced it is expanding its crypto card issuing program and will allow more partners to join in. Visa, who already works closely with Coinbase, published a blog post in support of digital currencies admitting that they are the future of money. Soon the global money transfer company will be ready to reveal some more exciting news.
Apart from credit card companies, PayPal admitted they will add the long-awaited service of trading crypto to their platform. Interestingly enough, the company has chosen Paxos, a stablecoin that recently launched its brokerage service, as their official partner for this project. Although the details are still unclear, this is good news.
Long Way to Adoption
Crypto adoption is slowly but steadily pushing its way to the masses. What used to be a simple line of code a decade ago has now become a solid currency. Bitcoin is no longer just a tool for speculation and gaining quick profit, it is proper money that you can use to pay for goods and services.
In the beginning, very few people took digital currencies seriously, but once Bitcoin hit the headlines in 2017, things changed. Many well-established companies with various backgrounds including banking and tech corporations started thinking of ways they could implement blockchain technology into their business or even issue their own currency.
Last year, Facebook revealed its plans to launch Libra, its native cryptocurrency that was supposed to become a serious rival to the traditional payment system. The tech giant managed to gain support from both Visa and Mastercard. However, the US government was not happy about this and reacted immediately. Eventually, when a few major partners, including Visa and Mastercard, decided not to go against the regulations, Facebook had to change the original idea too.
While Libra’s master-plan might have been too ambitious, other companies came up with a different strategy to let crypto holders use their coins for everyday use. Crypto cards, based on the platforms of both Visa and Mastercard, allow their owners to spend their crypto just like they do with fiat.
All you need to do is choose and order the card, link your wallet, and enjoy a bunch of benefits that the card provides. As of now, it is the easiest way to use your cryptocurrency for everyday purchases.
Apart from that, there are crypto cards like Nexo, that allow you to spend the value of the crypto that you own without actually selling it. This way, the Nexo card users can spend the value of their crypto and at the same time still benefit from any potential price appreciation of that crypto.
What Blockchain Tech Brings to the Table
Promoting crypto by promoting blockchain projects themselves is one thing. But real adoption will gain real traction only when more well-established and companies unrelated to crypto share their positive experience with the technology.
Nowadays ignoring the possibilities that cryptocurrency tech has to offer means denying yourself the ability to move forward with your business development. But why exactly is it so great?
First of all, the decentralization of money means fewer cyberattacks, broader coverage (since everyone can get access to finance unlike with traditional banking), and full transparency of the financial processes.
- Limited Emission
Secondly, since the issuance of most coins — including Bitcoin — is limited, the inflation rate is lower than with fiat currencies as you cannot just print more money to solve economic problems. One may argue that crypto is way too volatile to be a reliable fiat replacement, but it’s only a matter of time before the price stabilizes. Once crypto is universally accepted, chances are that the volatility will settle.
And the truth is, all the big corporations have figured out the future benefits of digital money. Visa, Mastercard, PayPal, and many other forward-thinking companies started investing in crypto a while ago, from issuing crypto cards to partnering with major crypto exchanges and other promising platforms, and hiring teams for their newly-minted blockchain departments.
Decentralized digital money is easier to transact with, it’s more fair and unifies the people of the world, so why not give it a go?
The Bottom Line
Cryptocurrency development often meets strong resistance that comes primarily from governments. While businesses all over the world, big and small, are ready to embrace the new tech that could help them become truly global and more efficient, the states are not in a rush to accept the innovation. For them, it means they have to come up with a long list of regulations and figure out how to not let this new financial system destroy what they’ve been building for years.
The most forward-thinking countries are working out a set of regulations on how to manage digital currencies, others find it easier to ban them, and there are those who think of ways to use crypto for their own interests. It’s still too early to say which strategy will turn out to be the winning one, but there’s no doubt that blockchain and crypto are going to change the way our economy works.