There’s cheerful news coming from New York-based financial services card solution maker MasterCard. MasterCard successfully obtained a patent that will enable it to incorporate bitcoin-based transactions on its credit cards. No doubt, this is yet another move that sends a clear-cut signal to the cryptocurrency community and the world in general that Bitcoin is here to stay.
Details Of The Patent
Tagged “fractional reserves of blockchain currency,” MasterCard announced this patent Tuesday (yesterday), renewing hopes that Bitcoin would become the next-gen payment instrument despite some laws calling for to its outright ban.
Reason For Obtaining The Patent
In a document published by the credit card company and filed in the gazette of the US Patent and Trademark Office, Mastercard states that the move gained urgency following a surge in the number of Bitcoin transactions customers performed and additionally want their transactions to remain anonymous and secure.
Mastercard nonetheless notes that cryptocurrency-based transactions have some demerits which include a lack of improved processing and storage facilities. The statement says that the setback is from the loopholes in blockchain technology as it is still in its early development stage. Another noticeable lapse of the blockchain transaction is the delay; for instance, while traditional transactions happen in nanoseconds, blockchain transactions take up to 10 minutes to deliver.
The company adds that obtaining the patent was important because MasterCard is always exploring innovative ways of improving the services they offer their customers, thus creating value for them. It further states that securing the patent is good for protecting the company’s intellectual property whether or not the idea comes to fruition.
The head of equity research firm Fundstrat Global Advisers, Tom Lee, told CNBC that it was a piece of cheerful news for the global cryptocurrency community. He says that this move will validate the conviction that cryptocurrency-based transaction is actually a form of transaction. The bitcoin bull points out that countries like Japan perceive blockchain-based transactions as real transactions and wonders why others refuse to follow suit.
Bitcoin Market Report
Bitcoin crossed the threshold of $7,000 Tuesday around 2pm ET, throwing the global cryptocurrency community into a celebratory frenzy. Data available on Coinbase indicates that Bitcoin stayed above $7,300 all day, representing an increase of over 13% from the previous month.
Despite falling below $6,000 in June, Bitcoin remains the biggest cryptocurrency by market volume with a market cap of over $125 billion. The digital currency hit $19,500 in December last year, but later took a nosedive in the first quarter of 2018.