Bitcoin Price Soars With Two Financial Giants Supporting Crypto
Bitcoin‘s price reached new highs on Thursday after Mastercard (MA) announced it would support some cryptocurrencies on its network and Bank of New York Mellon (BNY) said it plans to transfer, store and export digital assets.
In addition to Mastercard and the Bank of New York Mellon, companies such as Tesla (TSLA), PayPal (PYPL), Square (SQ), JPMorgan Chase (JPM) and other large investors also merged with Mastercard’s rival Visa (V) supported Bitcoin became one of highest.
Bitcoin advocates say the interest of these companies and investors helped the Bitcoin price soar over the past year.
In addition, it is stated that the efforts of governments and central banks to support markets, inject cash and encourage them during the pandemic process, have accelerated the interest in alternative currencies.
In the statement made by Mastercard, it was stated that thanks to the decision taken, secure shopping opportunities will be provided to those who shop with crypto Money and this will provide significant benefits for the acceptance of crypto money. In the statement, it was stated that these facilities will be provided only for Bitcoin for now due security concerns.
Mastercard’s Crypto Evolution
Raj Dhamodharan, mastercard digital currency chief, said, on Wednesday that cryptocurrencies are an important part of the payment world.
Especially with Bitcoin’s recent surge in value, Dhamodharan stated that the use of cards to purchase crypto assets has proliferated on the Mastercard network.
Raj Dhamodharan also reported that they are in contact with major central banks preparing to launch their own digital currencies.
In the past years, Mastercard has been converting cryptocurrencies into national currencies when purchasing cryptocurrencies. Last year, the first steps were taken to create cards that allow spending using crypto money.
Mastercard also patented Blockchain, the shared record keeping technology that forms the basis of Bitcoin transactions.
The market value of bitcoin has increased by 6 % in the last 24 hours and reached $ 48,629. Along with this, Mastercard’s share gained 2.6 % on the stock market today. Bank of New York Mellon gained 0.9 % on Thursday.
Among stocks, which generally move in line with the price of Bitcoin, Grayscale Bitcoin Trust (GBTC) rose 9.1 % , Marathon Patent Group (MARA) 9.6 % , and Riot Blockchain (RIOT) rose 18 %.
Bitcoin Has Another Leap With Tesla Support
Last year, Visa collaborated with BlockFi to launch a Bitcoin reward card. Visa also introduced cards like this one.
Tesla announced on Monday that it purchased $ 1,5 billion of Bitcoin. The company added that it is now accepting cryptocurrency as a form of payment.
As a result of these statements and developments, the price of Bitcoin jumped. It was stated that Tesla’s new investment policy will provide flexibility to diversify and maximize cash yields to maintain operating liquidity.
As the popularity of Bitcoin pushed it more towards the mainstream asset category, it raised more questions within the security, storage and asset management portfolio of the cryptocurrency.
Analysts said that the rise in Bitcoin and cryptocurrencies and increased investor demands brought many risks.
Custody Bank Gains Importance
Bank of New York announced on Thursday that it has created a new Digital Asset unit to serve its customers’ crypto and digital assets to accelerate their business.
The bank has announced that they will activate some of these services by the end of the year.
Caroline Butler, supervisory manager of the bank said “Enabling the use of digital assets has made the conversion of custody banks mandatory,” and explained that banks are holding securities for their customers.
Bitcoin’s value and price rose as a result of the adoption of many large firms. PayPal also allowed customers to buy and sell Bitcoins through their PayPal account.
In addition to all this, Square bought $ 50 million of Bitcoin,
Massachusetts Mutual Life Insurance $ 100 million of Bitcoin.
You may also like: