Mastercard CEO says it “needs to be in the crypto space”
Cryptocurrencies may be the future of currency, as crypto analysts and crypto developers worldwide suggest, as financial institutions and even national banks are looking to integrate their finance capabilities with crypto coins and crypto wallets. At such an interesting time as this, Mastercard CEO Michael Miebach has mentioned developments in cryptocurrencies and CBDCs on July 29 earnings call, signalling the potentials of adopting the digital wallet soon in future.
Analysts report that traditional card networks and central banks are looking towards incorporating digital currencies as a means of ensuring their services remain at the helm of technological milestones. Mastercard CEO discussed the integration of digital currencies and stable coins, stressing that the company was “well-positioned” to be at the centre of intra and international value flows. He expressed the same, saying that the company needs to venture into this space as “people are looking for answers.” He added that his company is aiming a perspective to their customers by putting in place a “multi-rail payment service provider.”
Mastercard has been proactively keeping up with new adoptions, strategies and innovations in the domain of digital currency in order to stay in pace with its rival, Visa. Early in February 2021, it had also unveiled plans to include cryptocurrencies in 2021 to facilitate easier payments for its 30 million merchants worldwide.
Mastercard began a startup engagement program titled ‘Mastercard Start Path’ this week for accelerating fintech and companies working in the digital assets space. SupraOracles, STACS, Mintable and Taurus are the initial startups that have been onboarded through the startup accelerator.
The company has also initiated a virtual testing space for stimulating online distribution, transactions and issuance for central banks. The platform is created to test possibilities of wholesale and CBDC interoperability with pre-existing systems and check if they can push payments for daily goods and services. Meiback argued in the July 29 call that all the countries would have to make a trade-off between the current delivery of financial products and what CBDC would solve for them.
Meibach also informed that Mastercard is ready to support transactions with stable coins, poised to launch Facebook-affiliated Diem. Eric Grover from Intrepid Ventures had earlier this week remarked that CBDCs and stable coins should be available “in Mastercard and Visa’s wheelhouse” and that both these networks must engage with digital currency developments “with gusto.”