The 10th. In February, Mastercard announced that it would be supporting several cryptocurrencies on its payment network. According to the payments giant, the inclusion of cryptocurrency will allow customers to save, store and send money in new ways, while also providing new opportunities for merchants.

The announcement follows a January 30 presentation in which Visa confirmed its plans to further promote payments in encrypted currencies and ramps, showing that the company has long-term plans for the sector. With the two credit card giants on board, we can safely say that Bitcoin (BTC) is no longer an experimental form of money on the Internet, but a new asset class in its own right – and it’s here to stay.

Mastercard and Visa’s foray into cryptocurrency is just one example of the ever-growing number of large technology and payments companies interested in Bitcoin as an investment, payment method, or investment vehicle, but these two companies account for billions of payments per year.

What does this mean for Bitcoin in particular and for cryptography in general? Some say the industry doesn’t exist yet, but this latest development could be the beginning of widespread adoption. Ton Weiss, Bitcoins analyst and organizer of the Unscrambled Bitcoins conference, told Cointelegraph :

Bitcoin has not yet entered the acceptance phase, it is still in the speculation/investment phase. The biggest news is that Elon Musk and Tesla are buying Bitcoin as a strategic reserve instead of holding cash. Mastercard and Visa are interested in the first step of accepting users, but once users are comfortable with using/spending/receiving Bitcoins through Lightning, they slowly begin to push Visa and Mastercard out of their lives.

Gatekeeper effect: Let the police in.

When the announcement was made by Mastercard, Bitcoin was trading at around $46,400. Since then, the cryptocurrency has continued to grow and reached a new high of over $58,000, with the news likely playing a role in this phenomenon.

Additionally, in the week following the announcement, North America’s first publicly traded Bitcoin fund was approved by the Ontario Securities Commission. It reached a trading volume of $100 million in the first few hours.

A second Bitcoin ETF was subsequently approved by the Ontario regulator and is expected to reach $1 billion in assets under management by the end of February. In addition, the world’s largest depository bank, Bank of New York Mellon, announced that it would launch a storage service for cryptocurrencies. And then the world’s largest asset manager, BlackRock, confirmed that it is starting to show interest in Bitcoin.

Moreover, all eyes are now on Bitcoin, both among the titans of traditional finance and the small investors of Reddit. Ben Zhou, CEO of Bybit, told Cointelegraph that Twitter crypto seems to be the happiest corner of the social platform, with laser eyes and something that doesn’t catch everyone, from angry encrypted accounts to the world’s richest person to two US congressmen, adding :

This interplay of positive signals stimulates retail demand and creates a virtuous cycle. And we’re seeing growing interest, as evidenced by the increases and volume of Bebit’s trading.

Mastercard’s announcement came at a time when the number of confirmed payments per day on the Bitcoin network was steadily increasing. The number of payments in the network is defined as the number of beneficiaries receiving money in a transaction.

Metric emphasizes the value of the Bitcoin network as a secure way to transfer money without the involvement of a third party. Over the past 12 months, the average number of confirmed payments per day has increased from 500,000 to 869,000.

What does this mean forcryptography?

So, what do the efforts of Mastercard and Visa mean for the world of cryptocurrency? In the fourth quarter of 2020, there were 246 million Mastercard credit cards in the United States and 966 million worldwide, while Visa reports that it uses 3.5 billion cards worldwide and its network processes more than 140 billion transactions per year.

The two companies have different plans on how they will introduce cryptocurrency-based payments into the world of credit card transactions, and several questions remained unanswered in their announcements, including exactly how the integration will work.

While Mastercard’s announcement made it clear that cryptocurrencies would be coming to market later this year, it did not specify when or in what currencies they would be available. The payments giant hinted in its announcement that Stables could be the first on its network, but that other parts could follow.

In a blog post, Raj Damodharan, executive vice president of digital assets and blocking chain products and partnerships at Mastercard, hinted that the company will evaluate potential cryptocurrencies to include the use of its blocking chain partnership principles, which it published after leaving the Libra Association. It focuses on consumer protection, stability and compliance.

The integration of Visa and Mastercard into the world of cryptocurrency should allow for the transparent use of cryptocurrency for everyday payments, which can be seen as a step forward in the quest for mass adoption of cryptocurrency.

While it is not clear whether merchants will be required to accept payments in cryptocredit or whether such payments will be accepted by default, cryptocredit will effectively be available as a payment method to more than 60 million merchants worldwide. But there are still many obstacles to mass adoption. Arbel Arif, founder and CEO of Shopping.io – an online shopping aggregator that offers cryptocompetitive payment methods for retail shoppers – told Cointelegraph :

It will be a long process with a lot of development and quality control. Especially with cryptocurrencies, whose usability sometimes seems to be lacking. As for the first main level application, it’s a journey and a marathon. Don’t sprint. In the coming months and years, more and more companies are likely to announce the introduction of small cryptocurrencies before larger plans are implemented.

The increase in demand could lead to further compression of supply, as we see in the cryptocurrency markets, and further price increases. For now, however, Mastercard is only working with the Bahamian Sand Dollar, the world’s first digital central bank currency.

In the announcement, the payments giant unveiled a prepaid Mastercard that allows users to pay for goods and services with sand dollars anywhere in the world where the Mastercard is accepted. However, he suggested that his network will use cryptocurrents like Bitcoin in the future.

CryptoDebit Cards

Visa and Mastercard are already working with several cash cryptography companies to issue cash cryptography debit cards that allow users to pay for goods and services with their balances at millions of merchants worldwide.

Coinbase, BlockFi, Binance, Nexo, Crypto.com and others have issued encrypted debit cards that often include a refund in the form of cryptocurrency. Last year, Coinbase became a full member of Visa and can even issue its own cards. Eric Stone, head of data science at Flipside Crypto, told Cointelegraph that many similar announcements will soon follow, adding :

I see this as part of a larger and inevitable influx of institutional interests and the introduction of supply chain technology. Like many other careful observers of the cosmos, I saw this news as if, not as when.

Crypto debit cards differ from regular Visa and Mastercard cards by their interesting benefits, and the cryptocurrency itself can be used as a gateway for unclaimed exchanges while traveling.

Most encrypted payment cards are already supported by mobile payment solutions such as Apple Pay, Google Pay and Samsung Pay. The mobile application allows you to manage the cryptocurrencies used for payment, making it easier to choose.

However, existing encrypted debit cards often have relatively high costs associated with payment processing and the conversion of encrypted balances into cash received by merchants. In addition, some encrypted debit card providers require users to deploy a large number of their own tokens to get the best rewards, but encryption systems have some advantages. Finally, only the citizens of a limited group of countries have access to the most popular cards.

To what extent can Bitcoin become more common?

While there are still many questions about Visa and Mastercard’s approach to processing cryptocurrency payments through their networks, it is clear that the entry of these companies into the cryptocurrency space strengthens the legitimacy of the industry.

Since PayPal allowed its users to buy, sell and store cryptocurrents on its platform, Bitcoins and other cryptographic assets have been further legitimized as an asset class in its own right, now accepted by traditional financial firms.

A few years ago, in the eyes of the average consumer, cryptocurrencies were mostly associated with darknet markets selling illegal goods and uncontrolled speculation. BTC is now recognized as a store of value, so much so that publicly traded companies are investing in it. So, has Bitcoin finally made it? Is adoption mostly here? O Yavina, managing partner of the Cointelegraph Fund, told Cointelegraph that cryptography was indeed taking off in an unprecedented way, adding :

But we still have a lot of work to do to expand the cryptocurrency markets. While some regulators and financial institutions are still struggling with the cryptocurrency revolution, many have begun to see the value of blockchain technology and cryptographic assets. The future is bright and it is up to our industry to keep learning and innovating to overcome future regulatory hurdles.

MicroStrategy invested $1.145 billion in the purchase of 71,079 CTBs, which were worth approximately $3.8 billion at the time of writing. Tesla has announced a $1.5 billion investment. The electric car manufacturer reportedly bought 48,000 BTCs at an average price of $31,250 each. At current prices, the company would have about $2.5 billion at its disposal. MassMutual, Square, Ruffer Investment and others have also invested in cryptocurrency, which has helped push it past the $1 trillion market cap.

Bitcoin seems more popular than ever, but the data shows otherwise. According to Google Trends, interest in Bitcoin search is still below 2017 levels, despite significant price increases and growing adoption among businesses.

This likely means that large investors and corporations are driving the market, while small investors remain largely on the sidelines. As far as public opinion is concerned, however, the acquisition of these giants could change the way retail customers view cryptocurrency. According to Arif, large companies that act as a bridge between the ordinary buyer and the cryptocurrency, such as this company, are crucial to the entire industry as the cryptocurrency is taken seriously as a means of payment worldwide.

frequently asked questions

Can I buy bitcoins with a MasterCard?

MyBTC.ca has a referral agreement with Simplex for credit card processing. … To buy Bitcoins and other popular crypto currencies with Visa or Mastercard credit and debit cards, enter the amount you want to buy, as well as your wallet address and click Continue.

Can I buy bitcoins with a VISA card?

Coinbase allows you to buy Bitcoins directly with a credit or debit card.

Which credit cards can I use to buy bitcoins?

Coinmama and CEX.io say they accept credit cards, but only Visa and Mastercard. And even then, it doesn’t mean your credit card company will allow it. Most major U.S. credit card companies do not allow purchases in coding currency, while others punish their cardholders with fees.

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