Mastercard called bitcoin unsuitable for payments

by in Cryptocurrency News

Ann Cairns

Bitcoin does not behave like a payment instrument - it is extremely volatile and takes too long to complete, Mastercard executive chairman Ann Cairns said in an interview.

“If you and I go to drink coffee, and I decide to pay in bitcoins, our drink may cost me, for example, 40% more expensive from the time it was served. And the actual completion of the transaction will take 10 minutes,” said Cairns.

In her opinion, as an asset class, the first cryptocurrency can be compared with gold, but not classified as a means of payment.

Cairns noted that the company intends to introduce stablecoins into its network and is working with central banks on their plans for digital currencies (CBDC).

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Previously, Mastercard withdrew from the global stablecoin project Diem (then Libra), developed with the participation of Facebook.

Volatility has been highlighted as a barrier to Bitcoin investment by institutions, for example, JPMorgan, Berkshire Hathaway, or Bridgewater Associates.

However, Fundstrat Global Advisors scientific head Tom Lee recently stated that 40-50% corrections are "part of the DNA of the first cryptocurrency."

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He called the goal of a fair price for bitcoin $ 100,000, and the current levels, in his opinion, look like a sale.