Bitcoin is still not unanimous – MasterCard CEO does not see Bitcoin as a way to include the unbanked. Conversely, the latter prefers cryptocurrencies created by central banks.
Bitcoin, the financial system’s new bogeyman
On Tuesday, October 27, the Fortune Global Forum was held during which the CEO of MasterCard, Ajay Banga, spoke about Bitcoin. Although hardly surprising, the latter did not go dead hand.
Indeed, the businessman absolutely does not believe the idea according to which “Bitcoin helps the unbanked”. According to him, it is even rather the opposite, and his main argument lies in the excessive volatility of Bitcoin:
Obviously, Ajay Banga therefore found THE solution: the CBDCs. Because of their stability and the authority that issues them, these currencies would be more inclusive than Bitcoin. According to him, Bitcoin could even go so far as to scare the unbanked :
“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.”
MasterCard fully on CBDC
Of course, these words did not come out of anywhere. Last September Master Card announced that it wanted to ” help central banks in the deployment of their digital currencies (CBDC)”. To do this, MasterCard has developed a test platform, showing how CBDCs can interface with the rest of the financial system.
MasterCard sees a sizeable clientele in central banks. Because of its leading position in the world of payments, the firm has a prime position to offer a product of this type to these banks.
In view of the reluctance of the latter towards Bitcoin, MasterCard has every interest in positioning itself in the CBDC market rather than that of Bitcoin. It now remains to be seen whether central banks will be comfortable using a private group to manage their currencies.
“Fiat currencies, if they were to go digital, would they be helpful in cross-border trade flows and improving the efficiency of those—yes for sure,” Banga says.