Home / Crypto Currency / Mastercard Wins a Patent to Link Cryptocurrency With Fiat Accounts

Mastercard Wins a Patent to Link Cryptocurrency With Fiat Accounts


mastercard

Advertisement

Mastercard has been granted a patent that grants it rights for a method for “managing fractional reserves of blockchain currency.”

With Mastercard’s latest patent, we’re getting closer to using our cryptocurrency credit cards to purchase goods. According to the filing, the method addresses the storing of both fiat and cryptocurrencies under one profile. This means, as a user, you’d have two linked accounts with your bank — one for your fiat wealth, and one for crypto.

Mastercard Believes Cryptocurrencies’ Biggest Advantages are Their Biggest Challenges

In the document, Mastercard justifies the patent explaining how users have increasingly preferred cryptocurrencies to fiat currencies due to its anonymity. The company believes some consumers have chosen digital currencies in an effort to prevent fraud.

However, Mastercard argues cryptocurrencies ensure very little protection to the receivers of funds. While traditional fiat payments are processed in a matter of seconds, crypto transactions can sometimes take as long as ten minutes. If you’re trying to pay with cryptocurrencies at a retail store, for example, that delayed confirmation can be an issue.

Additional, the document states people are taken aback by cryptocurrencies and the blockchain because they’re so different from traditional payment methods. For that reason, combining systems already in place for fiat currencies with the digital assets could potentially promote adoption while retaining the benefits of decentralization.

Fruition?

While in theory, it all makes sense, as it usually happens with patents, it’s not completely clear what Mastercard intends to do. There is no mention of whether this system would be supported by a blockchain of its own, for instance.

In an email to CNBC, Seth Eisen, Mastercard’s senior vice president for communications, said:

“We’re consistently looking at ways to bring new thinking and new innovations to market to create value for us and our customers and cardholders. Patent applications are part of that process, taking steps to protect the company’s intellectual property, whether or not the idea ever comes to market.”

Apart from its convenience to masses, combining traditional payment systems with cryptocurrencies will help combat fraud, Mastercard explained. Hypothetically, the system would use existing fraud and risk algorithms to assess the legitimacy of cryptocurrency transactions while giving the digital assets permission to access the information they couldn’t before — such as credit bureau data, historical fiat transaction data, or demographic information.

This is just another patent added to Mastercard’s long list of blockchain-based solutions. Just last month, CCN reported two patents for the banking company — one for anonymous blockchain transactions, and another for a blockchain travel itinerary bidding system. As Eisen stated, these could be just Mastercard’s efforts to secure as many systems and processes as possible without any real plans to develop them in the near future.

Featured image from Shutterstock.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.
Advertisement
Read more

Check Also

Bitcoin Bomb Threats Strike Hong Kong After Debacle In U.S., Canada

Over the past 72 hours, bomb threats attempting to extort Bitcoin (BTC) from business owners and governmental agencies have taken the world by storm, affecting thousands across Canada, the U.S., and New Zealand. Although the threats have begun to recede from the limelight in the western world, the issue may only be getting started across the Pacific Ocean in Asia. Hong Kong Targeted By Bitcoin Bomb Threat According to an exclusive report from the South China Morning Post (SCMP), an English news outlet centered around Asia’s happenings, bomb threats requesting BTC have arrived in the inboxes of a number of Hong Kong firms. As Michael Gazeley, CEO of Network Box, burned the candle on both ends on Friday, he purportedly saw a foreboding message land in his business email, telling the SCMP that he was “shocked.” This message was, of course, a threat from an anonymous group(s) asking for $20,000 U.S. worth of cryptocurrency in an apparent shakedown. If the specified sum, dubbed a “security fee” by the group(s), wasn’t sent to the sender’s address, the terrorists claimed that they would bomb Network Box’s offices. In an interview with the outlet, Gazeley, obviously perturbed by the occurrence noted: “This looks like the third wave of blackmail emails plaguing the world in the past few years… I have never seen something like this, which sounds like cyberterrorism, in my 20-year career in cybersecurity.” Yet, the cybersecurity expert went on to add that he was 99.999 percent confident that the message wasn’t worth its water, so to speak. Gazeley drew attention to the layout, language, and the poor grammar contained within the email — accentuating that this message is nothing more than a poor attempt at a money grab scheme. Hong Kong authorities have yet to comment on this odd Bitcoin-related case, so it remains to be seen how many businesses came under fire. Yet, a representative from the IT branch of Hong Kong’s legislative council lambasted this new scam format, stating that “scammers need to be smarter,” making it clear that such a form of extortion is ineffective and baseless. Canada, U.S. Also Hit With Issue This news comes just days after this same issue struck businesses throughout North America. As reported by NewsBTC previously, on Thursday, a number of places of work, public places, stores, and pertinent landmarks were targeted by the same scam outlined above. Although police departments, namely New York’s, have made it clear that such emails hold no credence, a number of firms purportedly closed up shop as a preemptive security measure. A number of subway stations in Toronto, Canada’s largest city, purportedly shut down operations due to the threat. A community hospital in Hillsboro also decided to temporarily shutter its operations. Per The Verge, even Infinity Ward, the development company behind Call of Duty, had also made a conscious decision to evacuate its headquarters. Seeing that no explosions have occurred at locations targeted, it can be assumed that these threats have lacked legitimacy since day one. Featured Image from Shutterstock The post Bitcoin Bomb Threats Strike Hong Kong After Debacle In U.S., Canada appeared first on NewsBTC.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.