The risks presented by digital currencies far outweigh the benefits, MasterCard has claimed.
The global payment processor made these comments in its submission to the UK Treasury’s call for information on digital currencies last November.
According to the four-page submission, obtained by CoinDesk via a freedom of information request, MasterCard doesn’t believe digital currency has many, if any, strong benefits.
It attacks claims of digital currency’s low transaction costs, low payment processing time and strong system safety. The document reads:
“We would argue that, when compared to MasterCard’s network, the claims pertaining to the speed and safety of digital currencies does not hold up, not least given that on average it takes 10 minutes for a block to be verified and that digital currencies are far more susceptible to hacking attacks.”
MasterCard goes on to say digital currency transaction costs may currently be lower than those involved in traditional payments methods, but this is because digital currency service providers don’t currently bear the cost of complying with consumer protection and anti-money laundering laws.
However, if regulation requiring this is introduced, the company says, the transaction costs will soon rise.
MasterCard’s submission suggests any new regulation the UK government