Mastercard Embraces Regulated Stablecoins Globally

CRYPTO
Mastercard Embraces Regulated Stablecoins Globally

Mastercard is deepening its push into crypto by integrating stablecoins into its global payments network. In collaboration with Fiserv, the company will support FIUSD in card products and merchant settlements. It’s also joining the Global Dollar Network, backing USDG, and expanding support for PayPal’s PYUSD and Circle’s USDC. These moves highlight rising institutional adoption of stablecoins—a trend gaining momentum as U.S. lawmakers advance regulatory frameworks like the GENIUS Act.

Mastercard's initiative will allow consumers to spend both fiat and stablecoins under a single interface using Mastercard One Credential, including for cross-border payments via Mastercard Move. The firm aims to streamline stablecoin usage across its 150 million merchant locations, enabling faster, cheaper, and programmable transactions.

As stablecoins become more regulated and accepted, Mastercard is positioning itself at the center of the digital finance transformation—where blockchain, traditional finance, and mass consumer adoption begin to converge.

ECONOMY
Fed Stays Cautious on Inflation

Federal Reserve Chair Jerome Powell told Congress that interest rates will likely stay unchanged as the Fed assesses the full impact of tariffs on inflation. Powell described the U.S. economy and labor market as strong, but cautioned that inflation remains above the Fed’s 2% target. The Fed’s preferred measure could rise to 2.3% in May, with core inflation hitting 2.6%.

He emphasized the need for more data before making any policy moves, especially as the effects of President Trump’s tariffs remain uncertain. Powell made clear the Fed remains independent, stating political pressure plays no role in decision-making. His stance contrasts with recent calls from Trump for rate cuts.

While some Fed officials favor a July cut if inflation stays low, futures markets suggest the first reduction is more likely in September. Powell reaffirmed the Fed’s commitment to balancing price stability with employment, avoiding premature decisions that could disrupt long-term growth.

FINANCE
Tesla Sales Plunge in Europe

Tesla’s car sales in Europe dropped 27.9% in May year-over-year, even as electric vehicle demand in the region soared 27.2%. The dip marks Tesla’s fifth consecutive monthly decline, with the company’s European market share shrinking to 1.2% from 1.8% a year ago. The updated Model Y has yet to reverse the trend, as price-sensitive consumers increasingly favor cheaper Chinese EVs. Some have also distanced themselves from the brand due to political backlash against Elon Musk.

While overall car sales in Europe rose 1.9%, the biggest gains came from plug-in hybrids and alternative fuel vehicles. Chinese automaker SAIC saw a 22.5% sales boost, while Tesla lagged behind both traditional automakers and aggressive new EV entrants.

Despite booming demand for EVs—battery, plug-in hybrid, and hybrid cars made up nearly 59% of May’s registrations—Tesla continues to lose ground in a fast-evolving market. The pressure is growing for a stronger product and pricing response in Europe.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.