Mastercard CEO On When Crypto Becomes Mainstream
- The CEO of Mastercard, Michael Miebach, stated that crypto industry will have to wait for a long time in order to step into the mass adoption wave.
- Regulatory clearity and absence of a clear infrastructure have been the major reasons why the crypto industry has failed to attract huge number of insitutional and retail investors.
- Miebach sees a future where merchants accept and use these blockchain-based tokens to transact and settle their financial dealings on the blockchain everyday.
The CEO of Mastercard, one of the biggest financial firms and payment providers across the globe, Michael Miebach, recently shared his view on when the crypto industry would become mainstream and reach into the world of traditional banking where every person would be able to own them without fear. Miebach stated that crypto founders and firms will have to wait for a significant amount of time before they are able to step into the mass adoption wave.
As per the statement from Mastercard CEO, the only time mass crypto adoption will be seen is when the financial market regulators introduce proper laws and develop an infrastructure for the functioning of crypto assets and firms. Additionally, it is crucial to note that Miebach was quite optimistic when it came to crypto and blockchain, pointing out the substantial applications of the same.
Furthermore, it is also crucial to note that the Mastercard CEO thinks “it’s a long way to go before crypto becomes mainstream,” and added that there is an increasing number of investors who aim for entering the crypto space and put their money on the rising volatile asset class which has breached the $3 trillion market cap during the 2021 bull run.
While the Mastercard CEO sees great potential in crypto space, the executive stated that there exists a future where almost all merchants accept and use these blockchain-based tokens to transact and settle their financial dealings on the blockchain. However, there is a long wait and a much-needed regulatory clarity before that phase will be seen.
A lack of regulation of cryptocurrencies is one of the major reasons why the adoption rate of digital assets among institutions and retailers is very low. Furthermore, he stated that many people fail to gain knowledge of crypto investing and its basics. Therefore, they belief that the space is not safe as they lack the information on how to receive maximum protection on their holdings.
The Mastercard executive gave an example of non-fungible tokens and how purchasing digital art based on blockchain is a “clunky experience.” It was this reason that pushed his firm to partner with leading crypto exchange Coinbase, which is currently going through a rough patch due to a loss of revenue and impairment charges on its crypto holding.
“So we partnered with Coinbase to make it as simple as you buying coffee. I think these things need to click in, and then you have the building blocks for it to become mainstream,”
said Miebach.
As reported earlier, Mastercard has added seven blockchain startups to its accelerator program, known as “the Mastercard Start Path program” in an attempt to create a stronger presence in the industry.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
