Financial director of Mastercard reported that in the first quarter of 2018 the volume of cross-border transactions decreased. This happened, among other things, because large banks banned customers from using their payment cards to purchase crypto-currencies. This is reported by Coindesk.
According to the disclosure of Mastercard's financial report published on Seeking Alpha, Martina Hund-Mejen said that the volume of cross-border payments of the company decreased by 2% compared to the last quarter of 2017 "in part due to the drop [in] crypto wallet funding".
So the issue in this, first of all, in terms of the stacks, on the cross-border volume growth, the cryptocurrency funding or the crypto wallet funding really was 1 percent. It was 1 percent that we saw in the fourth quarter and it was 1 percent that we saw in the first quarter. What the issue is that a number of the banks have decided, in particular in the United States, that they would not allow the usage of cards for this particular funding vehicle. And that's why we have already seen a relatively significant decrease of the volume related to that event.
In recent months, several US and Canadian banks, including JPMorgan Chase, Bank of America, Bank of Montreal, Capital One and Citi, have banned cryptocurrency transactions due to credit risks associated with the high volatility of digital currency rates.
In addition, according to CEO Ajay Banga, the decrease in the volume of cross-border payments was also contributed by new restrictions and uncertainty regarding crypto-exchanges.
Right now there's a little less interest than there was in the latter part of the fourth quarter and the first quarter. We actually said that this is not something we count on because we just don't know how to predict it or we don't even want to count it.
However, Mastercard hardly considers cryptocurrency as a means of making a profit.