American Express Chairman and CEO Stephen Squeri said categorically that the company would not issue cryptocurrency-linked credit cards in the foreseeable future. Apart from its interest in stablecoins, it is researching the crypto market and may provide rewards points.
On October 25, American Express Chairman and CEO Stephen Squeri said at the Yahoo Finance All Markets Summit that the market will not see American Express cryptocurrency-linked credit cards anytime soon. Squeri did, however, state that he views large cryptocurrencies such as bitcoin and ethereum as gold, rather than typical cryptocurrencies.
The CEO exercised prudence with such cards and cited market volatility as a primary issue. As he said, I don’t believe it’s something that’s going to make significant inroads in terms of payments from a credit card standpoint. Why? To begin, there are still significant variations. Second, you get the service. You do not have any recourse against it. You are not earning points or extending credit.
Squeri did highlight, however, that the bank was focused on the possibility of cardholders redeeming membership and reward points, as well as monitoring stable coins. However, it looks that this is the extent to which it will go in the present context.
Amex, as it is also known, is making additional forays into cryptocurrencies. As is the case with many other banks in the country, the bank is pursuing a variety of cryptocurrency projects. This demonstrates that the financial sector is gradually warming up to cryptocurrency, a trend that is accelerating.
Financial institutions are investing in cryptocurrency.
While banks are not endorsing cryptocurrencies outright, they are experimenting with the technology. American Express customers were able to buy one-of-a-kind NFTs. However, what has garnered the most attention in recent months is Bakkt’s relationship with Mastercard, which will result in crypto debit and credit cards.
There hasn’t been much to remark in terms of cards issued by big banking institutions. MasterCard and Visa, on the other hand, have made several important moves toward collaborating with the crypto asset class, recognizing that interest in crypto is expanding.
MasterCard has acquired crypto intelligence company CipherTrace, while Visa has released a whitepaper on the interoperability of central bank digital currencies (CBDCs) and stable coins. Both companies have shown interest in NFTs.
After authorities develop a clear legal framework, more comprehensive incorporation of cryptocurrencies is anticipated. This may take months or even years, but the market is prepared for further cryptocurrency acceptance.
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