Mastercard views cryptocurrencies as an asset class rather than a means of payment, according to the payments giant’s chief financial officer. Mastercard’s crypto strategyhas been quite successful since the appearance of crypto environments“, he added.
Mastercard’s CFO on cryptocurrencies as an asset class or means of payment.
Sachin Mehra, Chief Financial Officer of Mastercard, shared his views on cryptocurrencies in an interview published Tuesday by Bloomberg.
He was asked how successful Mastercard’s cryptocurrency strategy was. “In the crypto world, we act as an on-ramp, with people using our debit and credit products to buy crypto. And we act as an exit ramp: When people want to cash it out, we help them gain access to use their crypto balances wherever Mastercard is accepted“, he detailed:
It is an ability to generate revenue that has seen some success since the advent 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 (CBDCs).
Sachin Mehra was also asked to what extent crypto-assets can become a true form of payment. “For something to be a means of payment in our mind, it must have a store of value.“, he replied. “If something fluctuates in value every day, like your Starbucks coffee today is going to cost 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 a the mind of the consumer.”
Mastercard’s CFO added:
So we see crypto more as an asset class.
“But as a payment instrument, we think stablecoins and CBDCs potentially have a bit more leeway.“, concluded Sachin Mehra.
In February, Mastercard extended its payments-focused advisory service to cryptocurrencies. The service covers “a range of digital currency capabilities, from initial education, risk assessment and bank-wide crypto and NFT strategy development to crypto cards and loyalty program design cryptographic“.
The payments giant filed 15 trademark applications in April for a wide range of services related to metaverses and non-fungible tokens (NFTs). In June, the company said it was bringing its payments network to web3 and NFTs.