Ajay Banga has revealed that Mastercard will be receptive to a digital currency only if it is developed, designed, and/ or mandated by a government.
According to Ajay Banga, the honorary president and CEO of Mastercard, all non-governmental cryptocurrencies are nothing but junk. In a recent media interview, the CEO was asked about the potential of emerging cryptocurrencies where he shared the aforementioned opinion.
Needless to mention, Mastercard is the second largest payment company after Visa. With the latest technological advancements of decentralized blockchain technology, the traditional business model of singular operators of global payment rails (including Mastercard) is expected to have an upcoming threat that can critically impact their business growth.
Ajay Banga has recently provided a media interview with the Economic Times where the honorary Mastercard executive has revealed that the company will be receptive to a digital currency only if it is developed, designed, and/or mandated by a government. According to him, all other non-governmental cryptocurrencies are bogus and absolute junks.
As per his opinion, if the government mandates a digital currency, it will be both challenging and interesting as their company will strive to find a way to stay ahead of the financial market. With that, Ajay Banga went on attacking and accusing the volatility and usage of bitcoins (particularly in ransomware payments). The CEO further mentioned that China’s crackdown on the emerging cryptocurrency industry would only add his arguments against bitcoin. For any currency, it is important to have basic two parameters, such as stability and transparency. Otherwise, you’ll only get all the illegal, illegitimate, and illicit activities in the world. Since the two fundamental parameters are missing in bitcoin and it’s even linked to ransomware payments, Ajay Banga has clearly stated his negative opinion against bitcoin.
Likewise, in a much-publicized rant that was held in the last month, Jamie Dimon (JP Morgan CEO) labeled bitcoin as a fraud. The former Bundesbank president and UBS Chairman, Axel Weber has admitted that bitcoin does not fulfill the functions/requirements of a currency.
Around a year ago, Mastercard president of technology and operations i.e. Rob Reeg had provided an official statement that the company was keen to research and invest in the blockchain, but not in bitcoin.