Mastercard CEO Says Crypto Has a Long Way to go Before Going Mainstream

Michael Miebach, the Chief Executive Officer of American payments giant Mastercard Inc is the latest financial industry veteran to share his optimism about the future of the nascent crypto ecosystem. 


In a recent interview with Yahoo Finance, Miebach said he believes in the potential of the emerging assets, however, there are a lot of intricacies that must be resolved before the industry can go mainstream. When asked if he believes crypto can get to the point where everyone gets to use it as payment for transactions, Miebach responded by saying;


“Entirely possible, but I think it’s a long way to go before crypto becomes mainstream.”


Among the things he pointed out, that will need to be sorted include the ease of purchase of crypto and its associated products like Non-Fungible Tokens (NFTs). The compliance and security aspects of these emerging protocols have also remained a frail part that has created significant loopholes that must be covered in a bid to truly chart the mainstream embrace of the sector.


“I think this question on regulatory compliance, on scalable technology, on making sure it’s a predictable user experience – why is buying an NFT such a clunky experience? It shouldn’t be,” Miebach said in the interview.


Mastercard has been playing a central role in helping to get crypto products across to users around the world. Many crypto exchanges and service providers have partnered with Mastercard to issue co-branded payment cards to their users for easy crypto transactions. 

Notably, Miebach said Mastercard’s involvement in the crypto ecosystem is encompassing and also goes beyond direct payment and into Central Bank Digital Currencies (CBDCs). For Miebach, the crypto industry may have a lot of headwinds at this time, but the possibility that they will grow into a dominant aspect of the financial ecosystem in the long term is high.

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Mastercard Reveals to Develop CBDC as The Private Payment Provider

Digital payment Mastercard CEO Michael Miebach expressed his strong support for central bank digital currency (CBDC) in today’s third-quarter earnings conference call.

In the discussion about the central bank digital currency or CBDC, Miebach said that MasterCard is ready to provide a safe space for government-private sector banks to test CBDC and become a service provider.

Michael Miebach said that:

“We are saying at this point in time, the most likely chance for this kind of technology to work for payments is if it’s issued through a government in the form of a CBDC. We said that on a couple of calls before, and we said that we will make our network ready to do that as and when a government is ready to put out a CBDC that will exist alongside the dollar or the euro as a settlement currency in our network.”

On October 21, the Bahamas became the first country in the world to issue CBDC. As reported by Blockchain. On October 26, Nigeria has become the first African nation to launch a CBDC called eNaira officially.

In addition, On Monday, October 25, Payment giant Mastercard announced cooperation with U.S. Institutional Exchange Bakkt to expand integrated cryptocurrency solutions and payment services.

Mastercard said that the third-quarter financial report data showed that the steady control of the epidemic and the opening of cross-borders have also begun to encourage the public to use Mastercard for cross-border payments.

In the third quarter financial report announced, the company’s net profit and earnings per share belonging to shareholders have both exceeded expectations. 

The statistics show that Q3 net revenue was US$4.985 billion, compared with US$3.837 billion in the same period last year, an increase of 30% year-on-year in accordance with GAAP accounting standards.

Net profit in the third quarter was up to US$2.414 billion, a year-on-year increase of 59% from US$1.513 billion in the same period last year.

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