Mastercard CFO: cryptocurrency is not a means of payment

According to Sachin Mehra, stablecoins and central bank digital currencies are more suitable instruments for exchange

05.08.2022 - 06:45

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What’s new? Mastercard Chief Financial Officer Sachin Mehra has said that cryptocurrency is too volatile to be classified as a payment instrument. In an interview with Bloomberg, he explained that central bank digital currencies (CBDCs) and stablecoins are more suitable as a medium of exchange. However, Mehra added that cryptocurrencies have a great future and will help the world in the transition from cash to electronic payment methods.

Bloomberg’s material

What else did the representative of Mastercard add? In theory, cryptocurrency could help the financial system, Mehra believes, but its price is too unstable to use asset in everyday life:

“If something fluctuates in value every day, so your Starbucks coffee costs $3 today and tomorrow it will cost you $9, and the day after it will cost you a dollar, that’s a problem from a consumer mindset point of view,” Mastercard CFO explained.

In May, Mastercard CEO Michael Miebach said that the SWIFT cross-border payment system may be replaced by CBDCs. In his view, the system of cross-border payment may cease to exist in 5 years. He believes that SWIFT may cease to exist in 5 years. However, his colleagues tried to tone down the statement, adding that the question requires a more detailed explanation.

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