On June 29, global payments company, MasterCard International LLC filed a patent suit that they hoped would allow its subscribers to charge their purchases in cryptocurrencies such as Bitcoin on their credit cards. The suit prayed for the multinational to be allowed ‘use of centralized access, to manage fractional reserves of fiat and blockchain currency integrated with transactional messaging’ as is the norm.
Blockchain transactions to be updated via messaging
Normally, each transaction is updated via transaction messages, which is what MasterCard was offering as the solution to the crime-prone blockchain and non-fiat currency transactions.
The New York State court granted patent for fractional cryptocurrency trading to MasterCard. This is an indication that the global payments giant plans to put up a management system of fractional reserves of Blockchain currency(s). The patent protects the LLC’s creation and confers all affiliated economic rights to MasterCard.
Crypto-usage is on the rise
In supporting their case, MasterCard submitted to the court that crypto-usages have been on the rise. They added that preference for anonymity which is supported by the Blockchain system necessitated the move. To rid the system off cons and criminals, Master Card proposed a fool-proof and secure storage system for which they sought patenting.
In a document from the U.S. Patent and Trademark office, the company’s vision is to safeguard the security of non-fiat transactions. Focus is on entities, service providers, merchants and purveyors looking for anonymity. Once the new system is introduced, the process of payment using cryptocurrency will be speeded up as owners will use a fraction of their digital currency to make payments.
Influence of cryptocurrencies
Fundstrat Global Advisors through their mouthpiece Tom Lee hailed the move. He said that it was a step in the right direction seeing that it will increase the acceptability of cryptocurrency as a form of exchange.
The firm’s senior Consultant of Research and Development, Steven Charles Davis, is the brainchild behind the innovative method. He asserted MasterCard’s acknowledgement of the influence of cryptocurrencies saying that the new system would provide layers of protection for the payee as well as the payer. Their personal information will also be secured. Additionally, the maintenance of a reserve fraction of cardholder’s funds in cryptocurrency will greatly reduce the time required to make blockchain transactions.
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