In an earnings call, CEO of Mastercard stated that the company’s presence in the cryptocurrency space is critical.
Traditional financial services platforms are attempting to adapt to the changing financial ecosystem as cryptocurrency adoption becomes more widespread.
Payment processors such as Mastercard and Visa intend to use their large client base and international reach to attract both government and private entities when testing their CBDC or stablecoin projects in order to maintain their importance in this industry.
During yesterday’s earnings call, CEO of Mastercard revealed that the company is developing a new initiative to assist startups as well as a virtual testing platform for central banks.
CEO of Mastercard: We have to be in this space
According to Miebach, the cryptocurrency industry is still in its early stages, and people are curious about how it works. His company intends to be the bridge that connects them to the use cases and impacts.
“What we believe we do is bring a perspective to the market as a multi-rail payment provider. We have to be in this space because people are looking for answers,” the CEO said.
Miebach stated that the company is experienced in its field of expertise and is ready to provide whatever services central banks require, particularly in light of the growing trend of CBDCs.
“All of these countries have to make a trade-off between existing delivery of financial products and what a CBDC is solving for, whether it’s financial inclusion or cross-border payments. We have experience with all of that,” he added.
Concerning stablecoins, Miebach stated that Mastercard would soon support such transactions under the condition that issuers strictly adhere to financial regulations and ensure user safety.
Mastercard recently announced a partnership with USDC stablecoin issuer Circle to test USDC settlements on its platform.
Mastercard Merchants Will Accept Cryptocurrency
With a growing number of institutional and individual investors interested in cryptocurrencies, payment processors such as Mastercard decided to provide assistance in order to avoid losing clients to competitors.
Earlier this year, the company announced that it would begin supporting a number of selected cryptocurrencies, acknowledging that they have become an important part of the payments sector.
The initiative will allow Mastercard’s over 900 million users to spend their crypto assets on all Mastercard vendors who support it.
Source: Cryptopotato