During yesterday’s earnings call, Mastercard CEO Michael Miebach clarified the company’s position on digital currencies. Last week it announced a deal with stablecoin firms Paxos and Circle. Previously, Mastercard had stated it may natively support stablecoins as settlement currencies. However, the term “might” was still used towards the end of Miebach’s comments yesterday giving slightly mixed signals.
So it seems there is not yet a definitive decision, perhaps relating to the need for regulatory clarity. In the meantime, it seems technical integration is a work in progress. Miebach stated the card firm would only work with stablecoins that are regulatory compliant, provide consumer protection, and are stable.
The purpose of the relationships with Paxos and Circle is to enable cryptocurrency users to cash out. They sell their cryptocurrencies for stablecoins. And the stablecoin providers convert it to fiat for Mastercard.
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