Experts and enthusiasts around the world have differing views of cryptocurrencies. Most see it as a great invention, whereas others still dismiss every aspect of it. Mastercard CEO Ajay Banga is not a fan of cryptocurrency due to its wild fluctuations and potential anonymity aspect.
Ajay Banga Wants Nothing to Do with Cryptocurrency
Both Visa and Mastercard have taken a hostile stance toward cryptocurrencies. Any association with this form of money is often nipped in the bud very quickly. For Mastercard CEO Ajay Banga, there is no future for cryptocurrencies whatsoever. He considers it “junk which shouldn’t be considered as a medium of exchange.”
There are a lot of misconceptions surrounding cryptocurrencies. This is especially true when determining how Bitcoin and altcoins are being used. The dark web and other criminals have shown an interest in this form of money for nefarious purposes. Ajay Banga claims 95% of all illegal online activity is paid for using cryptocurrency. He has not provided any evidence to back up these claims at this point.
It is true criminals have shown an appreciation for Bitcoin and altcoins. Despite Bitcoin lacking anonymity, other currencies provide such features. The likes of Monero, ZCash, and Dash are all growing in popularity on the darknet. Bitcoin is far less suited for this type of behavior. Its open ledger keeps a public record of all transactions in real-time. Moving criminal proceeds over the Bitcoin blockchain is asking for trouble.
It should be noted that cryptocurrency, like any financial transaction system, can be used for bad things. In the past, it was a given that all illegal actions, such as the buying and selling of narcotics, was done by using cash. Yet financial executives like Ajay Banga haven’t railed against cash being used for such nefarious activities.
India Doesn’t Favor Cryptocurrencies
This statement by Ajay Banga came about during the New India Lecture. He seems to echo thoughts of some Indian regulators who want to prohibit the trade of all cryptocurrencies. That decision causes a lot of friction among Indian cryptocurrency firms and users. Banga further commented on the situation by adding:
The idea of an 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 as a medium of exchange. It lacks transparency and predictability.
The opinion by the Mastercard CEO contradicts the current market sentiment. All cryptocurrencies have seen their first major surge since February of 2018. As such, it is not surprising this comment is uttered at such a crucial time. Every time the value of Bitcoin rises, financial experts will share negative opinions on cryptocurrency. This cycle is bound to repeat itself until official regulatory-based legitimacy is brought to the cryptocurrency industry.
Do you agree with Mastercard CEO Ajay Banga, or is he blowing hot air? Let us know in the comments below.
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Author: JP Buntinx