Mastercard’s chief executive officer (CEO) Ajay Banga says that bitcoin’s market volatility limits its use and scares away potential investors.
Speaking during a conference at Fortune Magazine’s Global Forum on Tuesday, Banga said the high volatility for cryptocurrency is hampering its adoption and putting off potential users. Despite the price of bitcoin reaching a new 2020 high, Banga says price volatility is still an issue for the coin.
He said,
Bitcoin per se is volatile in its valuation. 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.
Banga, who has a stated goal of getting one billion people worldwide connected to the banking system, claimed not to see much use for cryptocurrencies.
However, the MasterCard CEO lauded the development of central bank digital currencies, saying they could provide an improvement over standard fiat.
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