Mastercard is looking to bring crypto to the masses by making it easier for banks to get involved.
Some consumers have been skeptical, too. Cryptocurrencies like bitcoin
Mastercard’s chief digital officer said polling still shows demand for the asset, but roughly 60% of respondents said they would rather test the waters through their existing banks.
“There’s a lot of consumers out there that are really interested in this, and intrigued by crypto, but would feel a lot more confident if those services were offered by their financial institutions,” Mastercard’s chief digital officer, Jorn Lambert, told CNBC in an interview. “It’s a little scary to some people still.”
The payments company said its role is to keep banks on the right side of regulation by following crypto compliance rules, verifying transactions and providing anti-money-laundering and identity monitoring services. Mastercard will pilot the product in the first quarter of next year, then “crank the handle” to expand in more geographies. Lambert declined to say which banks have signed up so far.
While the industry is living through a bear market or “crypto winter,” Lambert said more activity down the road could lead to more transactions and fuel Mastercard’s core business.
“It would be shortsighted to think that a little bit of a crypto winter heralds the end of it — we don’t see that,” he said. “As regulation comes in, there is going to be a higher degree of security available to the crypto platforms and we’ll see a lot of the current issues getting resolved in the quarters in the years to come.”
Mastercard and Visa have both been on partnership sprees in crypto. Mastercard has already teamed up with Coinbase on NFTs and Bakkt to let banks and merchants in its network offer crypto-related services. Last week, VisaAmerican Express
Cryptocurrencies, ironically, were meant to disrupt banks and middlemen like Mastercard and Visa. Their underlying technology, blockchain, allows transactions to move without intermediaries. Still, Lambert said they haven’t seen industry pushback on their involvement. Crypto is on the “cusp of really going mainstream,” and still needs to team up with the incumbent players to get there, he said.
“It’s hard to believe that the crypto industry will truly go mainstream without embracing the financial industry as we know it,” Lambert said.