As Mastercard Chief Executive Ajay Banga said at the Fortune Global Forum on Tuesday, Bitcoin cannot function as a universal currency for those who are not bankers due to volatility. He also indicated that he does not know who is behind the cryptocurrency.
“I don’t believe in volatility or, for that matter, lack of transparency about who is involved in this currency. That is why we believe in central bank digital currencies.”
Banga also said Mastercard has an important patent library related to CBDC, which may help explain a positive cause for it.
When asked about Bitcoin (BTC) as a potential solution to economic availability, Banga stated that cryptocurrency was insufficient for nonbanks and provided a strange example of Coca-Cola bottle to illustrate volatility. the prices:
“Can you imagine someone financially excluded from trading in such a way that being included in a coin could today be worth the equivalent of two bottles of Coca-Cola and 21 bottles of breakfast? This is not a way to list them. It’s a way to make them fear the financial system.”
He believes that if fiat currencies were digitized, they would “assist in cross-border trade flows,” but added that “the economic inclusion of individuals is a completely different matter.”
Over the years, it has been a strong and anti-transparent cryptocurrency, describing any cryptocurrency subject to nongovernmental sanctions in 2017 and even comparing it to snakes in 2018, saying it “doesn’t deserve” to be considered prey.
However, Mastercard has publicly stated that it is open to government cryptocurrencies.
And in 2019, Mastercard appears to have taken a more open position in terms of cryptocurrency, and has become a co-founder of the Libra Facebook project. But in October last year, the payment provider left the project with Visa, Stripe and Paypal, citing a lack of transparency among the main reasons they left.
The CEO confirmed that Mastercard “has invested a significant amount of money” in CBDC, and added:
“Today we are one of the largest patent holders of the central bank’s digital currency.”
Banga said the ICB’s hedge fund, issued by Mastercard in September, allows central banks and commercial banks to jointly explore central bank currencies for use cases such as “transnational transaction flows.” The tool simulates different types of transaction environments, so that central banks can assess the use cases of central bank currencies. It is not clear which banks are using this tool.