Mastercard views cryptocurrency more as an asset class than a means of payment, according to the payments giant’s chief financial officer. Mastercard’s encryption strategy “has been quite successful as long as encryption environments have existed,” he added.
Mastercard CFO on Cryptocurrency as an Asset Class vs.
Mastercard Chief Financial Officer (CFO) Sachin Mehra shared his views on cryptocurrencies in an interview published Tuesday by Bloomberg.
He was asked about the success of Mastercard’s encryption strategy. “In the cryptocurrency world, we play the role of a ramp, with people using our debit and credit products to buy cryptocurrencies. And we act as the exit ramp: when people want to cash out, we help them gain access so they can use their cryptocurrency balances everywhere Mastercard is accepted.”
This is a revenue-generating capability that has been quite successful since crypto environments emerged.
The company previously explained that it plans to develop products and services in three main areas related to cryptocurrencies: cryptocurrencies, stablecoins and central bank digital currencies (CBDCs).
Mehra was also asked how much traction crypto assets can get as a true form of payment. “For anything to be a vehicle of payment in our minds, it must have a store of value,” he replied. “If the value of something fluctuates every day, so your Starbucks coffee today is $3 and tomorrow is $9 and the next day is $1, that’s a problem from a customer mindset point of view. . consumer”.
Mastercard’s CFO added:
So, we see cryptocurrency more as an asset class.
“But as a payment instrument, we think stablecoins and CBDCs potentially have a little more clue,” concluded Mehra.
In February, Mastercard expanded its payments-focused advisory service to include cryptocurrencies. The service encompasses “a range of digital currency resources, from initial education, risk assessments and bank-wide crypto and NFT strategy development to crypto cards and crypto loyalty program design.”
The payments giant filed 15 trademark applications in April for a wide range of non-fungible tokens (NFTs) and metaverse services. In June, the company said it would bring its payment network to web3 and NFT.