MasterCard CEO Attacks Cryptocurrencies Calling Them ‘Junk’

· 27 Jul 2018 in Crypto News, Home
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Cryptocurrencies received another attack from the president and CEO of MasterCard known as Ajay Banga. He said that cryptocurrencies are junk and that they do not deserve to be considered as a medium of exchange.

MasterCard CEO Attacks Cryptocurrencies

Mr. Banga can be added to the list of important figures commenting negatively on Bitcoin and other virtual currencies. 

CNBC TV 18 reported:

“I think cryptocurrency is junk… The idea of anonymized currency produced by people who have to mine it, the value of which can fluctuate wildly – that to me is not the way that any medium of exchange deserves to be considered a medium of exchange.”

During an event held at the Indian Consulate in the Big Apple, Banga criticized cryptocurrencies and made a relation between them and the dark web. At the same time, he mentioned that twelve Russian military officers were indicted by the US Department of Justice after trying to influence the local elections and receiving virtual currencies.

However, Banga said that MasterCard may accept digital currencies that are created by central banks explaining that ‘government mandated digital currencies are interesting.’ Different central banks all over the world are investigating the possibility to release a Central Bank Digital Currency (CBDC).

“If the government creates digital currency, we will find a way to be in the game. We will provide rails for moving currency from customer to merchant,” Banga explains. “The government mandated digital currencies are interesting. Non-government mandated currency is junk.”

The company is also investing important sums of money in research and development. Indeed, according to a report from the Financial Times, MasterCard emerged as the most active filer of blockchain patents between 2012 and 2017. China has also been one of the most active countries in the blockchain market after registering more patents than the entire United States.

Some time ago, we wrote at UseTheBitcoin that MasterCard was able to win a patent that would allow users manage ‘fractional reserves of blockchain currency.’ This may be related to the intention of Mr. Banga of being close to CBDCs.

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