Crypto’s bad year may mean it will take a little while longer for digital currencies to become widely adopted, according to Mastercard CEO Michael Miebach.
“I think there’s a long way to go before crypto becomes mainstream,” Miebach said in an exclusive Yahoo Finance Presents interview (video above).
The year up to this point has been highly volatile for the entire crypto complex, which has in turn held back its wider development.
Rising interest rates have hammered the stock prices of upstart crypto trading platforms such as Coinbase (COIN) and Robinhood (HOOD). At the same time, mass layoffs in the space are well underway, and the backdrop of higher rates has also weighed heavily on the pure prices of digital assets from bitcoin to dogecoin.
Miebach added that the industry needs to get regulation and compliance considerations ironed out before there is mass crypto adoption.
SEC Chair Gary Gensler has sought to lay the groundwork for tough regulation of the crypto industry. The prospect of a more forceful regulatory regime comes after various trading platforms, such as Celsius, blew up earlier this year.
Despite the crypto turmoil, Mastercard unveiled a new program in mid-October called Crypto Source. The program enables financial institutions to bring secure crypto trading capabilities and services to their customers.
“There’s a question of regulatory compliance, of scalable technology, of making sure there’s a predictable user experience,” Miebach said. “Is that going to happen in the next 6 months? Most likely not. But are we optimistic and are we investing? Absolutely.”