Recently, Mastercard won a patent that protects a new method that will manage the financial reserves of blockchain currency and Permits Credit Cards to Make Bitcoin Transactions. With this, consumers, across the globe will be able to charge their purchases with the use of their credit card by using bitcoin as a currency. At present, the Mastercard holders can only pay for the things that make use of the currency that the government has declared as a legal tender, states Seth Eisen Mastercard’s Senior Vice President for communications.
In a document that has been recently published with the U.S. Patent and Trademark office, Mastercard stated that there has been a significant use in the blockchain currencies by consumers who are expected to value the anonymity and security. But there have been several disadvantages by using digital currency, the document has been noted and there is a need to enhance the storage and the processing capacity of such transactions.
Further, the document states that the while the blockchain currencies can often provide safety and security for the payer’s data and such security may be quite limited for payees, especially due to the limitations of the blockchain. For instance, the digital coin transactions still take longer, which is around 10 minutes for the blockchain and bitcoin transactions versus nanoseconds for the traditional payments.
As a result, both merchants and consumers have to wait for a significant amount of time for these digital transactions to go through or to rely on the good faith of the payers, which are considered as valid. In addition to this, the anonymity of the blockchain may also leave those who are accepting the payment at a disadvantage.