We need to be in the crypto space, says Mastercard CEO

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Traditional card networks compete to ensure that their services remain at the center of new developments in digital assets, whether they are central bank digital currencies or private sector stablecoins.

During an earnings call on July 29, Mastercard CEO Michael Miebach discussed recent developments in crypto and CBDC, arguing that the company was well positioned to remain a mainstay of intra-market value flows. and international:

“What we think we are doing is bringing perspective to the market as a multi-rail payment provider. We have to be in this space because people are looking for answers.”

Mastercard has been very proactive in keeping up with digital currency innovations, spurred, in part, by competition with rival Visa. In February, Mastercard unveiled plans to support crypto in 2021, paving the way for its nearly 1 billion users to spend their crypto at more than 30 million supported merchants around the world.

Earlier this week, the company announced a new startup engagement program as part of the Mastercard Start Path, an acceleration program aimed at supporting fintechs and businesses working with digital assets, cryptocurrency and blockchain technology. The latest to be integrated include Oracle blockchain startup SupraOracles, blockchain infrastructure provider STACS, digital asset firm Taurus and Mintable, a marketplace for the issuance and trading of NFTs.

On the public side, the company has also deployed a virtual test environment designed to help central banks simulate the issuance, distribution and transactions of CBDCs between multiple parties. The platform is designed for both wholesale and retail CBDC designs and offers a practical overview of how, among many other possibilities, a CBDC could be interoperable with existing payment methods and be used to pay for goods. and daily services.

During the call for results, Miebach argued: All of these countries have to make a trade-off between the existing delivery of financial products and what a CBDC solves, whether it’s financial inclusion or cross-border payments. . We have experience with all of this. “

Mastercard is also not neglecting the stablecoins industry, which has already seen successful currencies like the USD Coin (USDC) linked to Circles’ dollar and is ready for the launch of Facebook-affiliated Diem. Miebach confirmed that the company is preparing its network to support stable coin transactions, provided its issuers meet regulatory requirements and meet consumer protection and safety standards.

The CEO of Visas made similarly optimistic remarks about stablecoins this year, saying their blockchains can be seen as payment rails similar to RPT or ACH networks. Visa is also not averse to more volatile crypto assets, seeing them as a store of value for which the company can still provide fiat ramp services.

Related: Visa Approves Bitcoin Spending Card For Australian Startup CryptoSpend

Eric Grover, director of Intrepid Ventures, told reporters this week that stablecoins and CBDCs should be in the wheelhouse of Mastercard and Visas and that both card networks should enthusiastically engage in these developments.

Earlier this month, Mastercard announced new partnerships with Circle, Paxos, Evolve Bank & Trust and many more on a joint project to enable banks and crypto companies to deploy crypto cards that can be used anywhere. where Mastercard is accepted.

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