Mastercard CEO Publishes Company's Plans for Accepting Cryptocurrencies
Michael Michach, Mastercard's CEO, recently shed some light on how Mastercard will incorporate cryptography into its network.
In an interview with Bloomberg, Emily Chang, the company's CEO said the company will enable its customers to make transactions using the Bahamian digital currency Sand Dollar.
The partnership's offspring will allow Bahamian citizens to pay at places that accept Mastercard.
Mastercard and Island Pay previously issued the world's first digital currency card tied to a central bank. Nevertheless, Mr. Miebach said, the financial institution is still exploring the possibility of including private stabelcoins in its network.
Asked about Bitcoin, he said that because of the volatility of cryptocurrency prices, it would be difficult for Mastercard to introduce digital coins that are not backed by assets. According to Bloomberg, when the corporation announced that it would accept cryptocurrency payments in the future, it drove up the price of several cryptocurrencies.
Mastercard stresses the importance of digital currencies.
According to Mastercard's head of card operations, the COVID-19 pandemic wiped out several outdoor activities and forced people to make transactions online. Everyday activities related to travel, shopping, movies and sports were suspended for a while as several governments imposed restrictions.
In the interview, Meebach gave the example of the Super Bowl, a sporting event in which millions of people showed interest but were not allowed into the stadium. Will people go back to handling physical currencies when the restrictions are lifted, the CEO said, "People want to go online..... easy online checking programs will remain."
The Mastercard CEO is optimistic that online payments will continue, and the finance company is encouraging several countries to adopt centralized digital currencies such as the Bahamian sand dollar. He goes on to say that the plan to allow customers to use sand dollars in payments is not an experiment. However, they have created a sandbox for other banks to try out stablecoin payment services.
The fear of using Decentralized Crypto...
Online crypto payment services are on the rise in BTC, and companies such as PrivateFly are accepting payments for tickets in BTC. Nevertheless, financial institutions and businesses are still wary of using cryptocurrencies that are not backed by assets, such as BTC. The main reason for this apprehension, according to Miebach's CEO, is that such digital coins have prices that regularly rise and fall.
He explained how participating in BTC can make it difficult to buy something as familiar as pizza, stating, "Imagine you are buying a pizza and the pizza is worth ten units of free-floating cryptocurrency, and the price fluctuates significantly up and down within minutes. Your pizza could be forty dollars or it could be five dollars, and from a payment perspective, that's a problem."