PURCHASE, N.Y.–Mastercard has won a patent protect a method that would manage "fractional reserves of blockchain currency."
The patent means at some future point consumers may be able to make purchases using a Mastercard with the payment made in Bitcoin.
In the document published with the U.S. Patent and Trademark Office, Mastercard said that there has been "increased usage" in blockchain currencies by consumers who "value anonymity and security."
But there are disadvantages to using digital currency, the document acknowledges, and there's a need to improve the storage and processing capability of such transactions.
"While blockchain currencies can often provide such safety and security for the payer's information, such security may be limited for payees, particularly due to the limitations of the blockchain," the document said. For example, digital coin transactions still take longer: about 10 minutes for blockchain transactions versus nanoseconds for traditional payments, according to CNBC.
As a result, both consumers and merchants have to wait a "significant amount of time" for these digital transactions to go through, or "rely on the payer's good faith" that they are valid, said the document. It added that in the latter instances, the anonymity of the blockchain may leave those accepting payments at a disadvantage.
"Many entities, particularly merchants, retailers, service providers, and other purveyors of goods and services, may be wary of accepting blockchain currency for products and participating in blockchain transactions,” the document concluded, according to CNBC.
Details remain unclear on when the product might be brought to market.