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MasterCard’s CFO believes that the volatility of cryptocurrencies does not make them a good choice when it comes to payment settlements.
As the world gradually transitions from cash payments to digital settlements MasterCard Chief Financial Officer (CFO), Sachin Mehra has shared his views on the potential of cryptocurrency as a game changer. He bared his thoughts during a recent interview with Bloomberg as he chose to see the downsides of using crypto as a payment tool. At least, as of this moment.
According to Mehra, the volatility of cryptocurrencies does not make them a good choice when it comes to payment settlements. He said partly:
“For anything to be a payment vehicle in our mind, it needs to have a store of value.”
While admitting that there’s still a lot of cash that needs to be digitized globally, Mehra believes that central bank digital currencies (CBDCs) and stablecoins are better suited as payment instruments. This is because, unlike cryptocurrencies, they do not fluctuate daily. And from a consumer mindset, that is exactly how a payment instrument should be.
Is MasterCard in or out on Crypto?
Meanwhile, the recent views of Sachin Mehra do not exactly mirror the stance of the payment services giant on crypto. The company has signed so many crypto-based partnerships up until this point.
MasterCard’s first integration of cryptocurrency into its payment services came in February 2022. It set out to bridge the gap by allowing its users to purchase crypto via its debut and credit products. The company also opened up access for its users to use their crypto balances everywhere Mastercard is accepted.
Shortly after, in April, the payments giant also began making metaverse moves. It filed for 15 trademark applications for non-fungible tokens (NFTs) and other products in the process. And by June, MasterCard also announced bringing its payments network to Web3.0.
Beyond MasterCard as a whole, many of its top officials also approve of crypto, and that includes Mehra. Recently, the firm’s Global Head of crypto and blockchain – Raj Dhamodharan – said digital currencies pose no threats to investors. And that they’re arguably the best investment tool could think of.