TL; DR Breakdown
- Amex will not offer crypto-linked cards soon.
- The company is studying the crypto market and could offer rewards points, besides an interest in stablecoins.
American Express’s (AXP) stock price has been on an upward trajectory, almost hitting an all-time high. Yet, the company doesn’t have any plans to enter the crypto space anytime soon just for the buzz. Or even some meager profits. Stephen Squeri, the company’s President, prefers pursuing crypto in a more disciplined way.
“You are apparently not going to see an American Express crypto-linked card anytime soon,” Squeri stated at Yahoo’s All Markets Summit on Monday. Then, he added that he visualizes major cryptos such as BTC and ETH as an asset form like gold.
The CEO recognized the fragility of markets and put their customers’ needs first by being cautious on such cards. He said,
“I don’t think it is going to make incursions with credit card payments. Why? There are still huge variations and you only get rewards if the merchant has an incentive program. Again you can’t dispute it since you don’t have rights over it.”
Mastercard and Bakkt pulls a first-one
Elsewhere, Bakkt announced a new band that makes it easier for customers to pay with cryptos. The company’s collaboration with Mastercard will produce debit cards and credit cards. The development is attracting more clients hence increasing Bakkt’s shares. Yet, American Express remains adamant.
Squeri acknowledges that his firm has a card for stablecoins. He indicated that the American Express only gives cardholders the shot to redeem membership, repay points, and track stablecoins. But, he said they would not go beyond.
Are banks diving into crypto?
Cryptos continue to be at the forefront of novelty. So, banks are experimenting with them. For instance, American Express allowed cardholders to buy unique NFTs. But, Bakkt’s cooperation with Mastercard leading to crypto debit cards for consumers, is the talk of the town.
Despite crypto’s growth rate, much has not been done about cards. But, Mastercard and Visa are at the forefront in taking bold steps to work with crypto assets.
MasterCard bought CipherTrace, a crypto intelligence firm. On the other hand, Visa has published a whitepaper for CBDC and stablecoin interoperability. Visa and Mastercard have shown interest in NFTs.
Cryptos are becoming more popular, but they still lack the legal framework that will mainstream them. Regulators may take months or even years to give their blessing for cryptos to be like fiat money. But eventually, they will open up. The world is gravitating towards digital currency, and it is only a matter of time.