Mastercard awarded patent for blockchain in fractional reserve banking
Mastercard has been granted a patent for fractional reserve management of blockchain assets, which would involve the simultaneous storage of crypto and fiat to form ‘blockchain currencies’.
The application reads: “There is a need to improve on the storage and processing of transactions that utilise blockchain currencies… The use of traditional payment networks and payment systems technologies in combination with blockchain currencies may provide consumers and merchants the benefits of the decentralised blockchain while still maintaining security of account information and provide a strong defense against fraud and theft.”
This is not the first time that the credit card company has dabbled in incorporating blockchain, with multiple patent applications being reported over the last year. In the summer, we reported the companies patent request for the use of public blockchains to verify payment cards at the point of sale.
Dr Yaniv Altshuler, co-founder and CEO of Endor, sees Mastercard’s seeming embrace of blockchain technology as a positive sign for the industry as a whole, saying: “Blockchain technology has been in use for almost a decade now. While it was once rejected by the mainstream business sector, recently large enterprises have been integrating the technology as its benefits have become widely acknowledged.
“The level of investment in blockchain technology from companies like Mastercard solidifies the growing confidence in blockchain’s business potential.
“Aside from transforming product offerings, blockchain technology can provide additional benefits to traditional business sectors,” he continued. “The adoption of blockchain technology by corporate entities is bound to influence mainstream adoption. Moving forward, we should focus not only on the convergence of blockchain infrastructure with enterprises, but on the scalability of this trend for businesses of all sizes.”