- Mastercard’s CEO explained the firm’s big plans of this year for accepting cryptocurrency
- Mastercard will not allow Bitcoins payments as it doesn’t have a payments utility
- Users will have to exchange Bitcoins for stablecoins to spend
- Yet, the firm has not decided whether it will be adding central bank digital currencies or private stablecoins
Mastercard’s big plans for 2021 include the acceptance of cryptocurrency. Last week, Mastercard had revealed its plans to add cryptocurrency payments to its platform. On Thursday, Michael Miebach, the chief executive officer, explained the cryptocurrency acceptance plans in an interview with Bloomberg. In the interview, the CEO discussed the plans to accept cryptocurrency and argued regarding post-pandemic consumer spending. And Michael also found talking about new efforts to back Black-owned operations. According to Michael, amid the global pandemic, two-third of Mastercard’s all users are willing to do more digital banking and reduce cash use.
Will Mastercard’s big plans include Bitcoin or stablecoins acceptance?
Michael explained that central bank-backed digital currencies are the type of cryptocurrency that can bring utility from a payment perspective. He also highlighted that Mastercard believes that private sector stablecoins that are backed by cash reserves can work. However, Mastercard will remain under regulatory compliance and focus on data privacy. Following that, the firm focuses on stability, and it is clear that stablecoins can only offer stability. Indeed, he already clarified the confusion by mentioning that Bitcoin cannot be used for payments due to high volatility.
Mastercard didn’t decide which stablecoin to add
In the interview with Bloomberg, Michael was asked which cryptocurrencies Mastercard will be supporting in its platform. Moreover, the question was specifically focusing on whether there is the name of Bitcoin in the list of digital currencies being accepted by the firm according to Mastercard’s big plans. According to Michael, they have not yet decided which cryptocurrencies are about to be added. However, the payments firm will be allowing Bitcoin holders to exchange the asset to spend through Mastercard.
Is Bitcoin a pure speculative self-fulfilling bubble?
Last week, when Mastercard announced the addition of cryptocurrencies, the price of Bitcoin was observed soaring with the news. Following the fact, Nouriel Roubini, a business economist, and analyst considered that the asset is an entire speculative self-fulfilling bubble. However, Michael commented that Bitcoin does not bring much utility in terms of a payments perspective. Additionally, he highlighted that the critical point is that individuals have invested in the token and want to use the network to buy something. Following this fact, it is clear that users want real-time payments instead of using cards.
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