Discussions on the future of payments are among the most dominant debate topics currently, considering the increasing influence of digital currencies in the grand scheme of things.
Michael Miebach, the CEO of American multinational financial services corporation, MasterCard Inc (NYSE: MA) mocked a panel concerning the future of the SWIFT payment network at the World Economic Forum (WEF) event in Davos.
According to a recent report, Miebach had people waiting when asked if SWIFT, one of the significant interbank messaging systems that enables cross-border payments will be in existence in five years.
Despite acting jokingly with some smiles while answering the question, people took his responses seriously. The panel was organized by the Global Blockchain Business Council (GBBC) and featured discussions as it touches on what lies ahead for cross-border payments and the function Central Bank Digital Currencies (CBDCs) will have on the financial ecosystem.
Miebach said on the panel:
“If you can get a payment with all the data attached that you need as a company […] the cost savings of that in addition to a payment cost that is lowered, and the overall productivity boost, we can expect if we do this well, that’s the real goal here.”
Discussions on the future of payments are one of the most significant debate topics currently, considering the rising influence of digital currencies in the grand scheme of things. With a chain of events happening at Davos, the attendance of top Executives in the cryptocurrency industry has made the entire topic to be more of a comparison between the current role of crypto, and the traditional financial sector as a whole.
What made Miebach’s ‘No’ answer unique is the fact that other panelists including David Treat, a director at Accenture and co-founder of the Digital Dollar Project, Yuval Rooz, the CEO of Digital Asset, Jennifer Lassiter, executive director of the Digital Dollar Project, and Jon Frost, senior economist at the Bank of International Settlements all responded ‘Yes’ to the same question Miebach said No to.
Buy Crypto NowTracing MasterCard CEO’s SWIFT Comment
The goal backing the fact that MasterCard’s CEO said No to SWIFT existing in five years has been made clear by a spokesperson for MasterCard in an email statement that reads:
“Let us clarify the intent of the on-stage comment, as it’s not as simple as a yes or no answer. Michael was simply reinforcing what SWIFT has previously said – their operations continue to evolve. Its current form will not be the same in the future. They are adding more functionality and moving past just being a messaging system.”
While SWIFT still maintains a very significant position in the payment ecosystem, Miebach concluded that it may not be the dominant avenue to channel money across borders in the coming years. Also, Rooz and Lassiter think the messaging system may be replaced from the top spot, but do not expect this to happen within the next five years.
