Financial services company Mastercard’s Chief Financial Officer Sachin Mehra recently expressed his views on cryptocurrencies like Bitcoin and Ethereum. During an interview with Bloomberg, Mehar said that he believes that cryptocurrencies are still too volatile to be classified as a payment instrument, but stablecoins and central bank digital currencies (CBDCs) have the potential to fit in that role.
Mehra, who believes in crypto’s bright future, argued that digital assets could help in shifting from cash to electronic forms of payment. He expressed a serious need for electronification by stating:
“If you think about it globally, there’s still a ton of cash which remains to be electronified.”
Digital currencies cannot “at all” harm investors, according to Raj Dhamodharan, Global Head of Crypto and Blockchain at Mastercard. Furthermore, Dhamodharan recently asserted that they are a “package of multiple technologies,” which is what differentiates them from other products. He believes they are “probably the most mature” financial tool from the perspective of an investor.
Stablecoins and CBDCs better payment options?
Despite describing bitcoin’s advantages and those of other coins, Mehra believes they are still too volatile to be used by consumers as payment methods for everyday purchases:
The executive nonetheless categorized cryptocurrencies as an asset class, whereas CBDCs and stablecoins, according to him, might “potentially have a little bit more runway” and be used as payment instruments.
Due to the level of control CBDC will undergo, these financial goods will be extremely centralized, and sudden price changes are not projected.
Stablecoins, on the other hand, are coins whose value is tied to another asset, frequently significant fiat currencies or precious metals (like gold).
Not only Mehra but several big names agree that Bitcoin is not a good option for daily payment transactions. While Elon Musk believes that Dogecoin can take its place for day-to-day transactions, the European Central Bank or ECB declared CBDCs the winner in the fight.