Mastercard views crypto-currencies as an asset class rather than a form of payment, according to the payments giant’s CFO. Mastercard’s crypto strategy “Has been quite successful since the emergence of crypto environments“, he added.
Mastercard CFO on crypto-currencies as an asset class or payment method.
Mastercard CFO Sachin Mehra shared his views on crypto-currencies in an interview published Tuesday by Bloomberg.
He was asked about the success of Mastercard’s crypto-currency strategy. “In the crypto world, we play the role of on-ramp, with people using our debit and credit products to buy crypto. And we play the on-ramp role: When people want to cash it out, we help them get access to be able to use their crypto balances anywhere Mastercard is accepted“, he detailed:
It’s a revenue-generating capability that has seen some success since the advent of cryptographic environments.
The company previously explained that it plans to develop products and services in three key areas related to crypto-currencies: crypto-currencies, stablecoins and central bank digital currencies (CBDCs).
Sachin Mehra was also asked about the extent to which crypto assets can become a true form of payment. “For something to be a form of payment in our minds, it must have a store of value“, he replied. “If something fluctuates in value every day, like your Starbucks coffee today costs you $3 and tomorrow it’s going to cost you $9 and the next day it’s going to cost you a dollar, that’s a problem from the consumer’s mind.“
Mastercard’s CFO added:
So we look at crypto plus as an asset class.
“But as a payment instrument, we think stablecoins and CBDCs potentially have a little more room to maneuver“, concluded Sachin Mehra.
In February, Mastercard expanded its payments-focused advisory service to include crypto-currencies. The service covers “a range of digital currency capabilities, from initial training, risk assessment and development of a bank-wide crypto and NFT strategy to crypto cards and crypto loyalty program design“.
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 payments network to web3 and NFTs.