During the ‘New India Lecture’ conducted earlier this week at the Indian Consulate under the aegis of Consul General Ambassador Sandeep Chakravorty, Mastercard CEO Ajay Banga shared his views on cryptocurrency.
During the lecture series, the Indian American business executive shared his opinion that 95 percent of all illegal transactions on the dark web, including child prostitution, drugs, credit card and social security fraud, are paid using digital currency.
I think crypto-currency is junk….The idea of an anonymized currency produced by people who have to mine it, the value of which can fluctuate wildly – that to me is not the way that any medium of exchange deserves to be considered as a medium of exchange.
The lecture series is organized by the Consulate in partnership with the US-India Strategic Partnership Forum (USISPF).
Banga said crypto-currency is not a good medium of exchange as it does not have predictability and transparency. “Why is that the medium of exchange that is being preferred,” he said.
“Why civil society would like to put a snake in its backyard and think that somehow the snake will only bite my neighbor, I don’t get it,” he added
Banga even shared about the global trade principles,
My worry about trade is not to do with the idea that the principles of global trade need to be renegotiated to create a more level playing field on all sides of this environment for recipient and exporting countries but also that the way of getting to that agreement has to be more mature than what I feel currently is the pathway that is being followed.
He emphasized the need for society to depend on electronic payments rather than using solid cash, pointing out that credit cards are not used to fund illegal activities such as drug mafia and terrorism.
India is deeply impacted by terrorism as is this country. Do you really believe that the drugs that flow through from Afghanistan to Pakistan to India and corrupt the youth in Punjab today, that the drugs in America‘s campuses come in exchange for a credit card payment.
They come in exchange for cash and yet society buys into the logic that cash is free and electronic payments are expensive. Society needs to wake up,
Mr. Banga said.
He strongly backed Prime Minister Narendra Modi’s approach to digitization. Also, he appreciated the efforts taken by PM Modi to develop a cashless society in India.