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Bitcoin cannot act as an inclusive currency for non-banks, explains the CEO of Mastercard

October 28, 2020

Bitcoin cannot act as an inclusive currency for non-banks due to its volatilitysaid Ajay Banga, CEO of Mastercard, during the Fortune Global Forum conference on Tuesday. He also cited a lack of knowledge about who is behind the cryptocurrency.

“I don’t believe in volatility or transparency about who the person is dealing with this currency. That’s why we believe in digital currencies from the central bank. “

Banga revealed that too Mastercard has an extensive library of CBDC-related patents that may explain why they are so positive..

When asked about Bitcoin (BTC) as a possible solution for financial inclusion, Banga stated so The cryptocurrency is not suitable for non-banks. A strange example of Coca-Cola bottles is price volatility::

“Can you imagine someone who is financially excluded from trading by being ingested by a currency that could cost the equivalent of two bottles of Coke today and tomorrow? That is no way of doing it.” [se incluyan]. That way, they are afraid of the financial system. “

Bitcoin cannot act as an inclusive currency for non-banks, explains the CEO of Mastercard
Bitcoin cannot act as an inclusive currency for non-banks, explains the CEO of Mastercard

believes that If fiat currencies were digitized, they would “support cross-border trade flows”.However, he added this “Financial inclusion for individuals is something completely different”.

He has had a strong stance against crypto-opacity for years, and in 2017 names every non-governmental cryptocurrency junkand even comparing them to “snakes” in 2018 and saying that they don’t “deserve” to be considered a medium of exchange.

However, Mastercard has publicly stated that it is open to government-issued digital currencies.

And in 2019 Mastercard seemed to be taking a more open stance on cryptocurrencies as it was one of the founding members of Facebook’s Libra project.. In October last year, the payment provider abandoned the project along with Visa, Stripe and Paypal, citing a lack of transparency as the reason for its departure.

Put your money where your mouth is The CEO confirmed that Mastercard “invested a significant amount of money in CBDC,” added::

“Today we are one of the largest patent holders in the central bank’s digital currency space.”

The CBDC sandbox introduced by Mastercard in September this year, Banga said, enables central banks and commercial banks to jointly examine CBDCs for use cases such as “cross-border transaction flows”. The tool simulates different types of transaction environments to enable central banks to assess CBDC use cases. It is not yet clear which banks are using the tool.