Mastercard’s CFO on Crypto as an Asset Class Vs. Means of Payment
Mastercard’s Chief Financial Officer (CFO) Sachin Mehra shared his thoughts on cryptocurrencies in an interview published by Bloomberg on Tuesday. He was asked how successful Mastercard’s crypto strategy has been. “In the cryptocurrency world, we act as an on-ramp, in which people use our debit and credit products to buy crypto. And we act as an off-ramp: when people redeem it. If they want to, we help them be able to use their crypto balance everywhere they want to accept MasterCard,” he elaborated, explaining:It is a revenue generating potential that has been quite successful since the advent of the crypto environment.The company previously reported that it plans to develop products and services in three major crypto-related areas: cryptocurrencies, stablecoins, and central bank digital currencies (CBDCs). Mehra was further asked how much traction crypto assets could gain as a true form of payment. “For anything to be a payment vehicle in our minds, it must have a store of value,” he replied. “If there is some price fluctuation every day, like your Starbucks coffee will cost you $3 today and tomorrow it will cost you $9 and it will cost you a dollar the next day, that’s a consumer-mental approach. There’s a problem with it.” Mastercard Chief Financial Officer said:
That’s why we see crypto more as an asset class.“But as a payment instrument, we think stablecoins and CBDCs may have a little more runway,” Mehra concluded. In February, Mastercard expanded its payments-focused consulting service to include cryptocurrency. The service includes “a range of digital currency capabilities from the design of crypto cards and crypto loyalty programs to early-stage education, risk assessment, and bank-wide crypto and NFT strategy development.” The payments giant filed 15 trademark applications in April for a wide range of metaverse and non-fungible token (NFT) services. In June, the company said it was bringing its payment network to web3 and NFTs. What do you think of Mastercard’s Chief Financial Officer’s comments? Let us know in the comments section below.
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