One of the most known names in the payment processing industry, Mastercard, is planning on inculcating the principles of fractional banking, as indicated by its recent patent application.
In the document which has been published by the U.S. Patent & Trademark Office, Mastercard suggests allowing merchants to interact with blockchain currencies via a new method of simultaneous crypto and fiat storage, which it calls “methods for managing fractional reserves of blockchain currency.”
In the patent application, the company says that it wants to apply principles of the fractional banking which are “are specially designed and configured to safely store and protect consumer and merchant information and credentials.”
Mastercard’s document concludes, “the use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralized blockchain while still maintaining the security of account information and provide a strong defense against fraud and theft.”
Earlier in the month, Mastercard won a patent that will allow it to launch different blockchains, including those that can support multiple currencies on its network. The patent states that a partitioned blockchain will be created, that can store multiple transaction formats in a single blockchain, thereby reducing computing resources and processing power.
Mastercard’s payment processing rival, Visa, has also been making headway in the blockchain industry by partnering with IBM to launch a new payments program called B2B connect. This partnership will facilitate fast, secure and clear cross-border payments.
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