American Express credit card holders may one day be able to exchange points for cryptocurrency, but the company isn’t planning to release a crypto-related credit card anytime soon.
On Tuesday, in an interview with Yahoo! Amex Chief Financial Officer Stephen Square said that credit card holders “probably won’t immediately see a crypto-linked Amex card,” but the company has already been involved in the use of stablecoin cards and is tracking the development of digital currency by central banks from the US government. . The CEO said he considers major cryptocurrencies like Bitcoin (BTC) to be a “more important asset class” like gold, but he doesn’t think it will facilitate payments in the same way as credit cards given their price volatility.
“You don’t have a [crypto] service, you don’t have rights to challenge it, you don’t get a reward, you don’t give credit,” Squire said. “All these values that appear on a credit card are not suitable for cryptocurrency.”
“We’re looking at other ways, potentially, to use your reward points for membership, but I don’t think you’ll immediately see an American Express card tied to a cryptocurrency.”
Visa and Mastercard appear to be way ahead of Amex when it comes to partnering with companies to generate crypto benefits from cardholders’ purchases. In January 2021, Gemini crypto exchange launched its own credit card that allows users to redeem up to 3% in BTC. In 2020, BlockFi announced a partnership with Visa to allow cardholders to redeem 1.5% of their BTC purchases.
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Benefits are not limited to US-based cardholders, as is sometimes the case with travel and hotel rewards. In December, MasterCard announced the launch of a cryptocurrency-powered payment card in the Asia Pacific region, allowing users to convert digital assets into securities.