MasterCard CEO Banga Doesn’t Like Cryptocurrency

Investing, News, Regulation | October 9, 2017 By:

MasterCard President/CEO Ajay Banga has come out against bitcoin and other cryptocurrencies, labeling them “junk” in a scathing interview with Economic Times.

In the interview, Banga supported government-backed currency over digital ones. “If the government creates digital currency, we will find a way to be in the game,” he said. “We will provide rails for moving currency from customer to merchant. The government mandated digital currencies are interesting. Non-government mandated currency is junk.”

Banga decried bitcoin’s volatility and utility in ransomware attacks. He also had kind words for China’s crackdowns. “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. Why was the ransom for the (Wannacry) virus (wannacry collected in bitcoin? Why has China cracked down on bitcoin?”

Banga is the latest CEO from the traditional financial world to attack cryptocurrency. He joins JPMorgan Chase CEO Jamie Dimon and others who have used words like “fraud” and “junk” when talking about its potential.