3 major credit rating company’Pitch’ “PayPal and Mastercard cryptocurrency business, positive for financial improvement”
The global credit rating agency’Fitch Ratings’ recently gave an optimistic view that the promotion of cryptocurrency business by large payment companies could improve financial services in the future. Peach, along with Standard & Poor’s (S&P) and Moodys, is one of the world’s top three credit rating agencies.
According to The Block on February 14, 2021 (local time), Peach reported in a new report that the support of cryptocurrency functions of payment conglomerates such as PayPal, Square, Visa, Mastercard, Moneygram, etc. Diagnosed that it could be.
“Although cryptocurrency is not in the mainstream stage, it has the potential to significantly improve the financial system in the future,” said Fitch. “The cryptocurrency business can provide additional revenue streams for payment companies.” It expressed expectations that it will improve payment processing speed, reduce fees, and eliminate intermediaries to enable 24-hour fund transfer.
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Peach evaluated PayPal’s cryptocurrency trading service as “the first real-world, non-transaction-related large-scale cryptocurrency use case in the United States.” PayPal launched its cryptocurrency trading service in the U.S. in November 2020 and is receiving good responses. On February 10, 2021, Mastercard also announced plans to directly support cryptocurrency on the Mastercard network this year.
Fitch believes that, given the speed at which large payment companies enter the cryptocurrency market, the improvement of the financial system through cryptocurrency will not happen in the short term.
“Considering the low level of capital input and long-term market entry time, the short-term effect of strategic cryptocurrency investments by payment companies on credit ratings is limited,” said Fitch.
He added, “In order to realize the potential of cryptocurrency, appropriate regulation is necessary.”
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