The big names in the world of finance continue to give their opinion on virtual currencies.
This time it is the turn of Mastercard CEO Ajaypal Singh Banga, who bluntly attacks cryptos and calls them “junk”.
Cryptos, deep web currencies
The proof would also come from the numbers: according to his statements, in fact, 95% of transactions often illegal on the deep web, that part of the Internet that is not indexed by search engines, are done with cryptocurrencies.
Banga also stresses that virtual currencies are not a means of exchange, as they are characterised by very high volatility and a complete lack of transparency.
In other words, they are deprived of those basic characteristics that are present in everything that the economy can consider as money.
Surely on the “lack of transparency”, Banga would have something to learn, since the primary purpose of the blockchain is to be transparent and trustless – especially if we are talking about Bitcoin.
Cryptos no, blockchain yes
The fact remains, regardless of the statements, that the ban imposed by many banks on cryptocurrencies has inevitably led to the loss of some market share: in the specific case of Mastercard, there is mention of a 2% drop in revenues in the first quarter of 2018.
Mastercard’s attitude towards cryptos has always been ambivalent: while on the one hand, the leaders have always distanced themselves from virtual currencies, on the other they have not hesitated to appreciate the underlying technology.
Recently, in fact, the company filed a patent application for a system based on blockchain technology, which allows the authentication of credit cards directly from the POS through the verification, simultaneously with payment, of customer data and guarantees.