Ajay Banga, CEO of MasterCard Tags Cryptocurrency A “Junk”

Ajay Banga, CEO of MasterCard Tags Cryptocurrency A “Junk”

The president and CEO of Mastercard Ajay Banga, tags cryptocurrency as an anonymised currency that fluctuates anyhow and also a junk. This view he made known while expressing his opinion on the cryptocurrency, international community and trade, at the ‘New India Lecture’ held at Indian Consulate under the Guidance of Consul General Ambassador Sandeep Chakravorty. A lecture series organised by the Consulate in partnership with the US-India Strategic Partnership Forum (USISPF).

Cryptocurrency; An Anonymised Currency and A Junk

Ajay Banga, an India born American, CEO of MasterCard tags cryptocurrency as an anonymised currency that fluctuates wildly. He opined that cryptocurrency is a junk. His opinion on cryptocurrency, he stated at New India Lecture’ held at Indian Consulate. In his words, he said that,

“I think cryptocurrency is junk….The idea of an anonymised 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.”

Banga stated that cryptocurrency is a hideout for dark transactions as over 95 per cent transaction of child prostitution, drugs, credit card and social security fraud are done through the virtual currency. A currency that has no transparency and is unpredictable in his words is not worthy for conducting any transaction.
To further his argument of cryptocurrency as a currency that is not worthy for a transaction and a junk, he cited the usage of the currency by the 12 Russian intelligence officers indicted for interference in the U.S. election by hacking the Democratic National Committee, whose conduct was aided by cryptocurrency as later disclosed by the FBI.

Ajay Banga’s thoughts on Globalization

He further gave his thought on trade war that has become worse through tit for tat by countries. On the trade war, he states that nations that have benefited from open border trade of some countries over the years must be willing to reciprocate the same goodwill to their surrounding nations. Countries renegotiating trade rules is not his concern, but the mode of renegotiating it in a more matured manner than the current form.
In the lecture, Banga also states that globalisation can only work through keeping to trade rule, but the mode of flagrant violation by countries needs to be given attention. He finally made a robust argument for nations to use electronic payment to cash.
On the usage of electronic payment, Banga cites an example of illicit activities being perpetrated through cash and not electronic payment. To bolster this, he stated that, he expressed his support for the course of the prime minister of India Narendra Modi, towards a cashless India society.
Mr Ajay Banga’s derogatory view of cryptocurrency is not a new opinion, as many have trailed digital currency in recent time. What do you think of his view?