The CEO of Mastercard, Ajay Banga, has stated his opinion on cryptocurrencies that aren’t government controlled. Banga was quoted stating that those cryptocurrencies are “junk.” This represents a similar comment to that of Jamie Dimon only a few weeks earlier who called the currencies “fraud.”
Some view this comment as untrue, given that cryptocurrencies could become a direct competitor for a business like Mastercard. Banga’s opinion on cryptocurrencies as a whole is that they are not going to continue rising as we go into the future.
Because cryptocurrencies represent an almost new era for financials, some big names in the industry have become scared of the fact that they may take over more traditional systems. Banga however, was not fully opposed to the idea of a blockchain-based monetary system. He actually was quite in favor of this system, but only with the stipulation that they would be backed by a government.
Banga was quoted stating that “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.”
Banga’s opinion on cryptocurrency is not a new criticism of the system, it is simply the same opinion reiterated throughout scared financial institutions. Banga further stated that “If I pay for a bottle of water in Bitcoin, one day it is two bottles for a Bitcoin, the other day it is 9,000 bottles. This does not work. Any currency needs stability and transparency otherwise you will get all all the illegal activity sin the world. Why was the ransom for the virus collected in Bitcoin? Why has China cracked down on Bitcoin?” The comments of Banga only represent a small majority of the public, but do not seem to be slowing down the growing market.