Mastercard does not believe that cryptocurrencies will ever become a means of payment, while stablecoins and digital currencies of the Central Bank, according to company experts, have a better chance.
Sachin Mehra, Chief Financial Officer of Mastercard, one of the largest payment systems in the world, shared in an interview the company’s strategy for cryptocurrencies. The company is trying to take on the role of a “starting point” so that people use the company’s cards to buy digital currencies and, thanks to Mastercard, can use them wherever debit cards are accepted.
When asked how soon cryptoassets could become a means of payment, Mehra replied that before becoming a means of payment in the general sense, digital assets need to become an acceptable store of value:
“If something fluctuates in price every day, it’s not good. Imagine your Starbucks coffee costs you $3 today, $9 tomorrow, and only a dollar the day after tomorrow. It’s a nightmare in terms of consumer thinking.”
Before becoming legal tender, cryptocurrencies need to stabilize, which is currently not possible, Mehra said. Therefore, Mastercard views cryptocurrencies more as an asset class. However, the company is closely monitoring the development of stablecoins and central bank digital currencies (CBDCs), as they believe they have a slightly better chance of becoming a means of payment.
The company previously expanded its partnership with NFT platforms to allow its 2.9 billion customers to purchase digital collectibles directly.
Source: Bits
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