According to Mastercard’s chief financial officer, cryptocurrencies are more of an asset class than a form of payment. However, since crypto settings first emerged, Mastercard’s crypto approach “has been quite effective,” he continued.
Mastercard’s CFO on Crypto as Asset Class vs. Means of Payment
Sachin Mehra, the chief financial officer (CFO) of Mastercard, discussed crypto in an interview with Bloomberg that was published on Tuesday.
He was questioned on the effectiveness of Mastercard’s cryptocurrency strategy. “In cryptocurrency, we act as an on-ramp, allowing users to purchase cryptocurrency using our debit and credit products. And we serve as the off-ramp: When users want to cash it out, we assist them in gaining access so they may utilize their cryptocurrency holdings anywhere Mastercard is accepted,” he explained, adding:
“
“That’s a revenue-generating capability which has been fairly successful ever since crypto environments came up.”
Previously, the business stated that it intended to create goods and services in the following three crucial crypto-related fields: cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs).
- Will the price of Bitcoin and Ethereum rise or fall? Watch These Two Factors for Insights in August
- ECB study: Stablecoins and bitcoin are the worst options for cross-border payments
Mehra was also questioned on the potential use of cryptocurrency as a legitimate payment method. He answered, “Anything needs to have a store of value for it to be a payment vehicle in our minds. “From a consumer perspective, it’s an issue if something’s value changes every day so that your Starbucks coffee today costs you $3, tomorrow it’ll cost you $9, and the day after it’ll cost you a dollar.”
The chief financial officer of Mastercard added:
So we view crypto more as an asset class.
“
“But as a payment instrument, we think stablecoins and CBDCs potentially have a little bit more runway,” Mehra concluded.
In February, Mastercard added cryptocurrencies to its consultancy service that focuses on payments. “A variety of digital currency capabilities, from early-stage education, risk assessments, and the development of bank-wide crypto and NFT strategy through crypto cards and the design of crypto loyalty programs” are covered by the service.
In April, the world’s largest payments company submitted 15 trademark applications for various metaverse and non-fungible token (NFT) services. The business announced in June that it will expand its payments network to web3 and NFTs.
Comment Template