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- The chief executive officer of Mastercard, Ajay Banga has recently said that bitcoin wouldn’t be able to function as an inclusive currency for the population that is not banked.
- He added that this was due to the volatility of the asset.
The chief executive officer of Mastercard, Ajay Banga has recently said that bitcoin wouldn’t be able to function as an inclusive currency for the population that is not banked. He added that this was due to the volatility of the asset.
Furthermore, he also went on to add that there is a lack of knowledge about who is behind the cryptocurrency and mention that this was concerning.
“I am not a believer in the volatility or, for that matter, the absence of transparency in who is the person who’s involved with that currency. So, that’s why central bank digital currencies, we’re believers in.”
The CEO also added that the payments network has a hefty patent library in relation to central-bank digital currencies. To that end, the CEO was questioned as if bitcoin is a potential solution to the financial inclusion to which he responded saying that the leading cryptocurrency doesn’t meet the requirements for those who aren’t banked. He said:
"Can you imagine someone who is financially excluded trading in a way to get included through a currency that could cost the equivalent of two Coca-Cola bottles today and 21 tomorrow? That's not a way to get them [included]. That's a way to make them scared of the financial system."
Interestingly, he went on to talk about cross-border transactions mentioning that of Fiat currencies with a digital, they could “help with cross-border trade it flows.“
Potentially the most exciting part of this conversation was that the CEO confirmed that MasterCard has “invested a considerable amount of money“ into central-bank digital currencies as he said:
“Today, we’re one of the largest patent holders in the space of central bank digital currencies.”
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