Cryptocurrencies are Junk: MasterCard CEO Ajay Banga

Stating that “cryptocurrency is junk”, the President and CEO of MasterCard Ajay Banga joined the group of Cryptocurrency criticizers. He said cryptocurrencies do not have the potential to be considered as a medium of exchange.

‘Crypto is Junk’

During an event held at the Indian Consulate in the Big Apple, Banga said,

“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.”

He further criticised cryptocurrencies relating it with the dark web. He added that the US Department of Justice formally charged twelve Russian military officers for an attempt to influence the local elections and receiving virtual currencies. Saying that ‘government mandated digital currencies are interesting’, Banga affirmed that MasterCard might accept digital currencies created by Central Bank.

The possibility of releasing a Central Bank Digital Currency (CBDC) is under process by different banks across the world. Banga explained,“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. The government mandated digital currencies are interesting. Non-government mandated currency is junk.”

MasterCard

Headquartered in New York, United States, Master Card is a multinational financial services corporation. MasterCard rose up as the most active filer of blockchain patents amid 2012 and 2017. It is also investing an important chunk of money in research and development. After registering more patents than the United States, China has reached the list of most active countries in the blockchain market. MasterCard had earlier filed a patent to manage “fractional reserves of blockchain currency.”

 

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