A high-end global payments giant Mastercard has won a U.S. patent for accelerating cryptocurrency transactions, according to the document published on Tuesday, July 17, by the U.S. Patent and Trademark Office (USPTO). The new public blockchain-based method will allow clients to manage “fractional reserves of blockchain currency”, thus associating fiat assets and blockchain money. Up to that moment, cardholders could only pay for things using legal tender – a currency recognized as official money by the government. Mastercard proposed to make purchases using bitcoin stored on a credit card.
Mastercard noted that transactions on blockchain still take too long compared to traditional payment methods. The new method solves this problem speeding up the process by letting users simply use their credit card. Additionally, the system will be resistant to fraudulent and risky actions often associated with blockchain, as traditional payment networks can provide securing algorithms such as credit bureau data. The system will include multiple accounts, and each of them – a user’s data, fiat currency amount, cryptocurrency amount, the account identifier and an address.
Last year in October Mastercard rolled out an Application Programming Interface (API) to allow fiat payments on a proprietary blockchain. The company was granted a patent for a “method and system for integration of market exchange and issuer processing for blockchain-based transactions” in January and a “method and system for blockchain variant using digital signatures” in April.