Mastercard being one of the largest payments facilitating company, has surely directed its vision in favor of cryptocurrency and web3. As its principal function is to facilitate payments between merchant banks and the card-issuing banks of the customer, who normally uses Mastercard, Mastercard is predicted to be at the forefront of the financial sector.
As the crypto space emerged, the financial sector, across the globe took a new direction, with cryptocurrencies tipped to revolutionize the entire market. Mastercard saw this as an opportunity to facilitate its vision to grow in the financial sector and hence mended its ways into the crypto space. Earlier this year, Mastercard went on to collaborate with Nexo to launch world’s first backed crypto payment card, which was well received.
Mastercard’s CFO, Sachin Mehra, happened to address Bloomberg on Tuesday and went on to speak on key points about, how Mastercard is making inroads in crypto market space. He shared how, Mastercard is in favor of cryptocurrency to move beyond plastic. He talked about how crypto can be compared.
Crypto – An Asset Class or A means of payment or both?
Sachin Mehra, the CFO of Mastercard, in his interview with Bloomberg, spoke how Mastercard acts differently on different situations in regards to crypto. He said, Mastercard primarily acts as an on-ramp, where the users use the card to by cryptocurrencies such as bitcoin. But the card also acts as an off-road, where people cash in their cryptocurrencies, with the help of Mastercard where ever it is accepted.
Mehra added that, Cryptocurrencies are viewed more as an asset class, and to support his statement he said, “For any payment instrument, the commodity needs to have a store in value. But, if something fluctuates every day, like a cryptocurrency, then it cannot be an instrument used for payment. But, on the other hand, stablecoins and CBDCs, are more ahead in the race that can work as a payment instrument in the future.
Mastercard’s aggressive approach in WEB3.0!
In April, the world’s largest payments company submitted 15 trademark applications for a variety of metaverse and non-fungible token (NFT) services. The business announced in June that it would expand its payments network to web3 and NFTs.
According to me, Mastercard’s approach in the crypto makes it clear that the payments company is completely trusting the sector to revolutionize the financial sector, and if cryptocurrency succeeds in doing so, then Mastercard would surely be in the forefront in the financial sector of the world.