In a new interview with Yahoo Finance's Brian Sozzi, American Express CEO Stephen Squeri talks the future of crypto and why we won't see a crypto linked American Express card anytime soon.
BRIAN SOZZI: When is the Amex crypto linked card going to hit?
STEVE SQUERI: Probably not going to see an Amex crypto linked card any time soon. But let me talk about digital currencies for a second here. When you look at digital currencies, you're looking at three types. You're looking at traditional cryptocurrency, your Ethereum, your XRP, your Bitcoin. You're looking at stablecoins. JP Morgan has a stablecoin. There's a Facebook Diem. And then you're looking at government-backed digital currencies.
When I look at cryptocurrencies, I look at crypto and the ones I described as really more of an asset class. And I sort of view it as gold. I don't see it as really something that's going to make inroads from a credit card perspective or even a debit card perspective in terms of payments. And why? Well, number one, there's still tremendous fluctuations. Number two, you don't have the service with it. You don't have the dispute rights with it. You're not getting rewards, and you're not extending credit. And so all of those values that occur within, you know, a credit card do not lend themselves to cryptocurrency.
Having said that, look, we're involved with using the card for stablecoins. We watch government-backed digital currencies very, very carefully. You know, we're exploring other ways potentially to redeem your membership rewards points. But I don't think you're going to see an American Express card linked to cryptocurrency anytime soon.
BRIAN SOZZI: Is it too risky to go down that route, Steve?
STEVE SQUERI: Well, I mean, look, we don't use the American Express card to buy gold or to buy stocks. And if you take my position that crypto cryptocurrency is an asset class, we're not using the card for that. And so it's not something that we think we need to do.