The cryptocurrency traders and investors experienced a surge in demand for crypto-linked credit cards.
Although Mastercard expressed its optimism in crypto-linked credit cards, the CEO of American Express did not think otherwise. According to Amex Chairman Stephen Squeri, traditional credit cards will continue to flourish in the foreseeable future.
The American Express Chairman sees the largest cryptocurrencies like XRP, Ethereum, and Bitcoin, as gold rather than currencies. More precisely, an investor and trader would not buy a “stock” through a credit card. In the same way, a trader or investor would not purchase gold or other commodities through a credit card.
Since traders and investors treat cryptocurrencies like stocks, they would probably not see a crypto-linked credit card anytime soon.
One of the main reasons for not creating a crypto-linked credit card is the inherent qualities of cryptocurrency. According to Squeri, cryptocurrencies are immensely volatile, potentially interfering with payment terms and conditions.
However, the Amex CEO still sees a future in the crypto-ventures of other financial service providers.
According to Squeri, Amex watches the government-based digital currencies very carefully to determine their viability with its business model.
Amex intends to use cryptocurrency as an alternative means of redeeming membership reward points. More precisely, Amex intends to use stablecoins as an alternative means of redeeming membership reward points.
However, Mastercard already beat American Express in the race by creating a partnership with Bakkt last October 25, 2021. This partnership provides a better way for customer transactions through crypto-payment integration.