Following MasterCard and BNY Mellon’s announcements to integrate cryptocurrencies, Bitcoin’s value exceeded all-time highs. Bitcoin’s previous success was significantly overshadowed by the digital token’s recent market activities. After BNY Mellon’s announcement on February 11th, a single Bitcoin token had an estimated value of $48,000. Several factors attribute to Bitcoin’s success, but the cryptocurrency won’t gain acceptance into MasterCard’s network right away. Bitcoin’s unprecedented success proved the stability of the crypto market, but MasterCard has expressed interest in stablecoins with fiat-backing. Stablecoins with fiat-backing don’t produce the same risks as unregulated crypto tokens. The majority of cryptocurrencies use blockchain’s decentralized platform for transactions and exchanges, but blockchain’s ledger doesn’t precisely peg any fiat currencies.
Visa, MasterCard’s longtime rival, will not welcome digital currencies into its network until cryptocurrencies are considered legal tender. Until third-party regulators break into the blockchain platform, MasterCard and BNY Mellon seemingly remains the only financial businesses ready to embrace cryptocurrencies. MasterCard may accept Bitcoin tokens in the future, but the company will stick to stablecoins for the time being.