Mastercard Wins Patent To Link Crypto to Fiat Currency

Mastercard has won a United States patent to develop a “method and system for linkage of blockchain-based assets to fiat currency accounts” which essentially speeds up crypto payments.

Published by US Patent and Trademark Office (USPTO) on July 17^th, 2018, the document explains that in as crypto have seen an increase in usage over the conventional fiat currencies by consumers who prefer secrecy and safety.

Mastercard wrote.

“While blockchain currencies can often provide such safety and security for the payer’s information, such security may be limited for payees, particularly due to the limitations of the blockchain,” 

It continued,

“It often takes a significant amount of time, around ten minutes, for a blockchain-based transaction to be processed … Conversely, traditional fiat payment transactions that are processed using payment networks often have processing times that are measured in nanoseconds …

Therefore, many entities, particularly merchants, retailers, service providers, and other purveyors of goods and services, may be wary of accepting blockchain currency for products and participating in blockchain transactions.”

In many ways, the wide disproportion in payment dispensation times between the two classes of assets puts crypto at a disadvantage. According to the patent, there is the necessity to augment on the storage and processing of transactions that make use of blockchain currencies.

The patent also goes on to explain that it takes a substantial amount of time, approximately 10 minutes, for a blockchain-based transaction to be processed. On the contrary, conventional fiat payment transactions which are processed while utilizing payment networks in most cases have processing times measured in nanoseconds.

This not the first time Mastercard has expressed interest in addressing consumer protection in the space of crypto, having applied for a separate patent last year looking at building refund services for crypto transactions.

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