American Express’ stock price (AXP) is hanging out near a record, but investors shouldn’t expect the card-issuing giant to plunge into crypto for the sake of trying to gain a few headlines or add some profits.
The company’s chairman and CEO Stephen Squeri — a 36-year Amex veteran known for his forward-thinking strategies — is taking a more disciplined approach on crypto for now.
“You are probably not going to see an Amex crypto-linked card anytime soon,” Squeri said at Yahoo Finance’s All Markets Summit on Monday. Squeri said he views the major cryptos such as bitcoin and ethereum as more of an asset class like gold.
Added Squeri, “I don’t see it as really something that’s going to make inroads with a credit card perspective in terms of payments. Why? Number one, there are still tremendous fluctuations. Number two, you have the service with it. You don’t have the dispute rights with it. You’re not getting rewards and you are not extending credit.”
Amex’s stance comes as cryptocurrency exchange Bakkt shares soared Monday, after announcing a partnership with Mastercard to offer crypto debit and credit cards. The tie-up is alleged to make it easier for consumers to pay using digital coins, according to Yahoo Finance cryptocurrency reporter Jennifer Shoenberg.
Squeri points out Amex is involved with using the Amex card for stablecoins.
“We have watched government-based digital currencies very, very carefully. We are exploring other ways to potentially redeem your membership and rewards points, but I don’t think you are going to see an American Express card linked to cryptocurrency anytime soon,” added Squeri.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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