Mastercard CEO Ajay Banga has said in a recent interview with the Economic Times that he believes all non-governmental Cryptocurrencies such as Bitcoin are ‘Junk’.
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.
He goes on to talk about the lack of stability in Bitcoin and other cryptos and how without Government control over a currency it leaves the door open for illicit activities. Which is ironic when you consider how much crime is committed on the existing, untrackable financial infrastructure.
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 the illegal activities in the world.
Cryptocurrencies may not of yet reached their optimum potential and Bitcoin may not be the total solution for taking control of your finances without the need for a third party, but its safe to say that Blockchain driven forms of exchange will be the economics of the future.
Mastercard are however a big believer in Blockchain and for this reason they will soon be allowing businesses to do business to business transactions on the Blockchain:
Your credit card might soon be getting a blockchain boost – that is if you have a MasterCard. The financial services giant is offering its clients a blockchain-capable payment option for business-to-business transactions.[source]