According to the payment giant’s chief financial officer, Mastercard sees cryptocurrencies as more of an asset class than a means of payment. Mastercard’s cryptocurrency strategy “has been pretty successful ever since crypto environments came along,” he added.
Mastercard CFO on crypto as an asset class and means of payment
Mastercard CFO Sachin Mehra shared his take on cryptocurrencies in an interview published on Tuesday by Bloomberg.
He was asked how successful Mastercard’s crypto strategy has been. “In the crypto world, we play the role of a starting point when people use our debit and credit products to buy crypto. And we act as a starting point: when people want to cash out, we help them get access so they can use their crypto balances wherever Mastercard is accepted,” he elaborated, elaborating:
This is the ability to generate income, which has been quite successful since the beginning of crypto environments.
The company previously explained that it plans to develop products and services in three key areas related to cryptocurrencies: cryptocurrencies, stablecoins, and central bank digital currencies (CBDC).
Mehra was also asked how much traction cryptoassets could get as a true form of payment. “For anything to be legal tender in our minds, it must have a store of value,” he replied. “If something fluctuates in price every day, like your Starbucks coffee costs you $3 today, tomorrow it costs you $9, and the day after tomorrow it costs you a dollar, that’s a consumer mindset problem.”
The Chief Financial Officer of Mastercard added:
Therefore, we consider cryptocurrency more as an asset class.
“But we think stablecoins and CBDCs potentially have a bit more runway as a payment instrument,” Mehra concluded.
In February, Mastercard expanded its payment advisory service to include cryptocurrencies. The service covers “a range of digital currency opportunities, from early learning, risk assessment and bank-wide cryptocurrency and NFT strategy development to cryptocurrency cards and the development of cryptocurrency loyalty programs.”
In April, the payments giant filed 15 trademark applications for a wide range of metaverse and non-fungible token (NFT) services. In June, the company said it was migrating its payment network to web3 and NFT.
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