The decision of large banks on the prohibition of the use of payment cards for buying cryptocurrencies has led to the drop in the volume of cross-border transactions during the first quarter of 2018. On Wednesday the CFO Mastercard, Martina Hund-Megin (Martina Hund-Mejean).
According to her, the volume of cross-border transfers decreased by two percentage points compared to the last quarter of 2017, “partly due to the fact that customers were less likely to use credit and debit cards for buying cryptocurrencies”.
“The problem is that a number of banks, particularly in the United States, decided to ban the use of maps for this funding mechanism. And that is why we are already seeing significant reduction in the volume associated with this event,” said Hund-Medien.
Recall that for the past few months, JPMorgan Chase, Bank of America, Bank of Montreal, Capital One and Citi of the United States and Canada joined the group of banks, banning the purchase of crypto-currencies because of the credit risk due to price volatility.
It is noteworthy that against JPMorgan Chase had filed a class action lawsuit accusing the Bank of inflating credit card customers who used the funds to purchase cryptocurrencies just before the introduction of the ban.
According to the chief Executive officer of Mastercard Ajay Banga (Ajay Banga), a decline also brought new restrictions and the uncertainty surrounding the exchanges.
However, according to Banga, the company is not interested to consider cryptocurrencies in predicting future profits.