“Crypto Payment” is a problem from a consumer-mindset standpoint: MasterCard
The chief financial officer of MasterCard shared his opinion on Cryptocurrencies use in the payment system and explained the negative sides.
Mastercard Inc. is an American multinational financial services corporation, which is headquartered in the Mastercard International Global Headquarters in Purchase, New York. MasterCard is doing some development work on payment channels to bring all kinds of digital payment systems (stablecoins & CBDC) under a single roof.
On 2 August, Sachin Mehra, Chief financial officer of MasterCard, appeared in an interview with Bloomberg. Through the interview, Sachin argued that crypto assets could aid the shift from cash to electronic forms of settlement. So he believes that traditional fiat will come at the electronic level to help the online payment transactions.
“If you think about it globally, there’s still a ton of cash which remains to be electronified.”
Sachin ignored the role of cryptocurrencies in the payment system. He said that cryptocurrencies are highly volatile and can’t be used in the payment system. To explain his point of view, he said that your Starbucks coffee today costs you $3 and tomorrow it’s going to cost you $9 because of crypto, so how can we expect that consumers will accept this point without any mindset problem?
Further MasterCard officer categorized cryptocurrencies as assets and he supported the stablecoins & CBDC’s role in the payment system to some extent. These things are showing that MasterCard is really impressed with the blockchain technology but not with cryptocurrencies because of its volatility.
Earlier, in April 2022, Raj Dhamodharan, Global Head of crypto and blockchain in MasterCard, said that cryptocurrencies will not harm its Investors because there are varieties of things with cryptocurrencies, including technology & use cases, which make crypto assets unique.
Raj explained:
“Bitcoin is not just about the currency. It’s also about the chain. It’s also about the cryptology behind it and the decentralization and all that.”
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