MasterCard Incorporated, an American global financial services firm and a payment processing giant, has recently declared some important principles for its work with groundbreaking innovations including blockchain technology.
The declaration came a few weeks after it stated that it is planning to quit the Libra Association due to the regulation concerns. MasterCard also said they left the Libra Association because they are developing their own financial inclusion initiative. The firm however noted it would continue monitoring efforts in the development of the Libra coin. Other financial companies threatening not to work with Facebook’s own cryptocurrency include Visa and PayPal.
The payments giant has now issued a couple of guidelines that it needs its next blockchain and distributed ledger technology (DLT) cross-border payment service provider cohorts to fully observe.
Among these principles is about consumer protection. MasterCard Inc. wants all associates to work hard and ensure that all sensitive data is kept more secure.
Following the failings, turmoil and interruption that Facebook is facing in an attempt to launch Libra, MasterCard would need maximum regulatory obedience from its business associates.
In this case, any blockchain or DLT networks working alongside the payment company in question, would first require to have completely followed the pertinent laws existing in that sovereign, and further need to operate in line with the set laws governing illegal activities associated with cryptocurrencies including anti-money laundering, terrorism funding, etc.
Another important guideline is targeting on how to ensure that every member gets involved in a level playing field. Hence, all participants will participate in the blockchain and distributed ledger tech process as givers and receivers - starting from phone network operators to monetary companies including banks.
The payment giant has for many decades operated numerous secure, transparent, scalable payment networks globally, therefore, it is at this point where the company is basing to bring that know-how and capability to embryonic blockchain systems and cryptocurrencies, so as to develop the fintech industry.