Bitcoin and cryptocurrencies are never far away from a negative remark, and it’s almost tradition that the occasional CEO has something bad to say. Although the most recent comment from Mastercard’s CEO Ajaypal (Ajay) Singh Banga seems a strange one. Banga has called cryptocurrency junk when addressing the international community and trade at the ‘New India Lecture’.
Ajay Banga calls cryptocurreny Junk, again
Speaking at a series of lectures hosted by the Indian Consulate in partnership with the U.S.-India Strategic Partnership Forum (USISPF), Ajay Banga the CEO of financial giants Mastercard stated:
“I think cryptocurrency is junk….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.”
This is not the first time Banga has slammed cryptocurrencies, he previously expressed his opinions in October, 2017 when he spoke of cryptocurrencies not being “government mandated.”
The comments this time around seem unusual given that Mastercard have recently secured a patent which will enable bitcoin transactions via their payment systems.
Illegal transactions & anonymity
It may well be that this is a publicity stunt from the Mastercard CEO, however, it does appear that his major concerns are based around illicit transactions and the issue with an anonymous transaction.
He stated that crypto is mainly for black market transactions with over 95% of all transactions being used for transactions on the dark web. We are not sure where he got these figures from but research shows that these are falsified figures. Cointelegraph reported as “much as 44 percent of all Bitcoin transactions are associated with illegal activity, the “vast majority” of illicit purchases are still made with the more traditional tools, such as cash, according to a Cointelegraph report from March this year.”