The CEO of American Express believes cryptocurrencies have got nothing on traditional credit card payments. He believes credit card systems will continue to flourish, despite the rising popularity of this emerging sector.
In a recent interview with Yahoo, Amex Chairman Stephen Squeri revealed that he views top cryptocurrencies like Bitcoin, Ethereum, and XRP as being an asset class much similar to gold. According to the exec, clients of the payments giant don’t use their Amex cards to “buy stock” and would probably not do it for crypto either. And, that is why the world is “probably not going to see an Amex crypto-linked card anytime soon.”
Squeri went on to explain that this is because of the inherent qualities of cryptocurrencies. Ones that differentiate them from traditional payment methods.
“I don’t see it as really something that’s going to make inroads with a credit card perspective in terms of payments. Why? Number one, there are still tremendous fluctuations.”
“Number two, you have the service with it. You don’t have the dispute rights with it. You’re not getting rewards and you are not extending credit.”
The CEO does find value in crypto, however, with the exec noting that virtual currencies can make cross-border payments “a lot more seamless.”
Stablecoins – best of both worlds?
Moreover, the company is also retaining its focus on using their cards in the stablecoin sector, possibly due to the lack of price volatility they are subject to. Squeri also touched upon other crypto-ventures of the financial services provider, stating,
“We have watched government-based digital currencies very, very carefully. We are exploring other ways to potentially redeem your membership and rewards points, but I don’t think you are going to see an American Express card linked to cryptocurrency anytime soon.”
Interested or not, Amex has already been beaten in the race by Mastercard after it announced a partnership with Bakkt on 25 October 2021 to provide its consumers with crypto-payment integration. When paying with digital assets, users will also be able to offer and redeem rewards in cryptocurrencies and convert existing rewards. This will enable them to earn yields on their points.