Mastercard Patents a Method to Manage Cryptocurrency “Fractional Reserves”

Mastercard has patented a method to manage cryptocurrency “fractional reserves”. The big idea behind it seems to be that users will be able to pay with fiat on credit cards partly backed by crypto assets using a centralized system offering faster transaction conformation speeds.
Cryptocurrency “Fractional Reserves”
Mastercard has already acquired a lot of cryptocurrency-related patents before this. However, it does not seem to be planning to utilize the technology as no actual product or service have been developed. Asked about this, Mastercard senior vice president Seth Eisen explained to CNBC that, “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.”

In fact, reports from earlier this year indicated that the company would only agree to facilitate fully-regulated, central bank-issued, non-anonymous coins. “If governments look to create national digital currency we’d be very happy to look at those in a more favorable way,” Ari Sarker, co-president of Mastercard’s Asia-Pacific business, said back in March. “So long as it’s backed by a regulator and the value …it is not anonymous, it is meeting all the regulatory requirements, I think that would be of greater interest for us to explore.”

Is Mastercard really looking to become part of the cryptocurrency ecosystem or is it just hoarding patents for future legal battles? Share your thoughts in the comments section below.



Images courtesy of Shutterstock. Source news.bitcoin.com 

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