MasterCard Announces Blockchain B2B Payments Despite Rejection of Bitcoin
MasterCard recently announced a way for businesses
to make direct business to business (B2B) payments over their Blockchain technology-based network. The company has dubbed its offering “MasterCard Blockchain API,” and it will be debuted at the Money 20/20 Hackathon in Las Vegas in a few days. Testing and validation have been completed, and the tech will officially be ready for customers’ use beginning next week. The announcement is a bit ironic after the company’s wholesale rejection of Bitcoin. I guess as the old saying goes, “monkey see, monkey do.”
Blockchain technology has been raised as an excellent option for B2B transfers for a multitude of reasons. Blockchain transfers are fully private and secure, while at the same time offering flexibility and scalability for business transactions.
According to one executive:
“By combining Mastercard Blockchain technology with our settlement network and associated network rules, we have created a solution that is safe, secure, auditable and easy to scale.”
While the solution is a major coup for Blockchain technology in general, the credit giant’s announcement may be seen as copycatting the technology of other systems and platforms. Blockchain technology has, until the past couple of years, been relegated to the fringes of the tech conversation. The sudden interest and application from enterprise-level corporations shows an awareness of the power of the systems already designed by other companies.
Saudi Arabia’s IDB Plans Blockchain Financial Project
Institutional-level adoption cases for Blockchain technology
are cropping up everywhere. The most recent announcement comes from Saudi Arabia, where the Islamic Development Bank will use Blockchain-based financial platforms to reach out to Muslim customers. The Islamic Research and Training Institute is seeking to create platforms that are sharia-compliant via partnerships with Ateon and Belgium-based SettleMint.
According to the announcement:
“Involvement of the IDB, a multilateral development institution, could also encourage other fintech firms to incorporate Islamic finance to tap markets across the Middle East, Asia and Africa. Islamic finance follows religious principles such as a ban on gambling and outright speculation, but until now the sector has focused on traditional retail banking services.”
Global adoption growing
Recent announcements from other governments have indicated that Blockchain technology is making inroads into a variety of national and institutional arenas. The recent release of MasterCard’s B2B Blockchain technology-based payment platform indicates a widespread beginning for the adoption of Blockchain technology into various aspects of the financial sector.