Mastercard has the green light to create a system aimed at speeding up cryptocurrency payments. The project was approved on 17th July.
The patent was approved by the USPTO on 17th July. The filing indicates that even if crypto assets have “seen increased usage over traditional fiat currencies by consumers who value anonymity and security“, the payment system remains disadvantaged.
“There is a need to improve on the storage and processing of transactions that utilize blockchain currencies,” the patent cites, going on to explain:
“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.”
To reduce the processing time, the multinational corporation Mastercard would provide a new kind of account that allows crypto-based transactions to be operated through payment systems used by fiat currencies. The new account would connect several profiles to recognize a user’s “fiat currency amount, a blockchain currency amount, an account identifier and an address.”
The transfer itself will use fiat assets but recorded as cryptocurrencies. The financial services giant also added in the document that by using this method of transaction, the “payment networks may be able to evaluate the likelihood of fraud and assess risk for blockchain transactions using existing fraud and risk algorithms and information that is available to payment networks, such as historical fiat and blockchain transaction data, credit bureau data, demographic information, etc., that is unavailable for use in blockchain networks.”
Even so, this isn’t the first time Mastercard is looking to integrate blockchain technology into its system. As reported in April by Coindoo, the company submitted the patent named “METHOD AND SYSTEM FOR FAST TRACKING NAVIGATION OF BLOCKCHAINS VIA DATA MANIPULATION”. Furthermore, Mastercard was granted by the USPTO on 28 July to create a system that facilitates anonymous transactions through a blockchain network.