MasterCard applies for a blockchain-based payment system patent that would link fiat and cryptocurrency accounts.
MasterCard, one of the largest financial services organization which processes the transactions carried out on credit cards operated by a range of banks and other lenders, has applied for a new blockchain-based patent focused on customer protection and payment transactions, as reported by the US Patent and Trademark Office (USPTO) on July 17th. This new patent application includes a new blockchain-based method for linking assets between a public or private blockchain network, and fiat currency accounts. The system is described the as a “method to manage fractional blockchain currency reserves”, in addition to accumulating fiat currencies in a central account linked to a cryptocurrency. This system would allow plurality of account profiles, with each profile including a fiat currency amount, cryptocurrency, account identifier and address.
MasterCard states that the combination of traditional and blockchain-based payment methods would give consumers and merchants the benefits of a decentralized blockchain while still having the security of an account information and strong defense against fraud and theft. This method allows the evaluation of the potentiality of fraud associated with blockchain transactions, considering that existing payment algorithms such as credit or demographic information could be provided by traditional payment networks.
It is worth noting that the American multinational company has previously applied for another blockchain-based patent, a system to speed up payments and make them safer. Although MasterCard has been involved in the adoption of blockchain technology through its patent applications, its position on cryptocurrencies has not been positive. To the point that the company’s CEO has said that all cryptocurrency is “garbage”. Maybe we could see a change in position in the near future.
by Samuel Larreal
