The global payment service company, Mastercard, believes digital currencies are more of assets than a payment method. The company’s chief financial officer made this statement recently in an interview with Bloomberg.
Mastercard CFO Says Crypto’s Volatility Makes It Unsuitable For Payment
Also, the CFO added that the firm’s cryptocurrency plan has been successful thus far. The firm has taken giant steps in the world of digital assets, NFTs and the metaverse.
On August 2nd, Mastercard’s CFO, Sachin Mehra, discussed with news media Bloomberg. In the discussion, the executive shared his opinion about digital currencies.
The Bloomberg reporter asked Mehra about the crypto plan of the company. The CFO responded by saying;
“Mastercard as a gateway in the crypto sector. This is because it allows users to buy crypto using the firm’s credit and debit card. Additionally, the first assists users to gain access to their crypto holdings so they can utilize it anywhere Mastercard is authorized when they wish to cash it out.”
According to him, this is a revenue-generating feature that has been successful since the advent of crypto. Before now, the company noted that it plans to develop services and products in three areas the crypto sector.
They include CBDCs, stablecoins, and cryptocurrencies. Furthermore, the interviewer asked Mehra if crypto assets can gain enough patronage as a means of payment.
He replied by saying that anything used for payment purposes must have value. According to him, fluctuation and price volatility are major issues for consumers.
CFO Believes Stablecoins And CBDCs Are Better For Payment
The chief financial officer believes cryptocurrencies are more of assets than payment tools. This is because their volatility makes them unsuitable for payment.
The Mastercard executive concluded that CDBCs and stablecoins are better suited as payment instruments. This is because their prices are quite stable.
Meanwhile, Mastercard added cryptocurrencies to its payments consultancy business in February. The payments behemoth submitted 15 trademark applications in April to offer various NFT and metaverse services.
Also, a growing number of crypto firms have made similar moves lately. They include Meta, Burger King, Mcdonald’s, and Panda Express.
The firm announced two months ago that it would expand its payments infrastructure to include NFTs and web3. As per a press release, the business is collaborating closely with Web3 company Moonpay, Candy Digital, Immutable X, Mintable, The Sandbox, and Spring.
This allows customers to pay for digital items offered by these platforms with their Mastercard cards. According to the payment firm, the firms above make up a sizable portion of the NFT market, with annual sales of more than $25 billion in 2021.
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