For the executive part of the solution to the problem will be in the Central Bank Digital Coins (the CBDCs).
One of the main points that Bitcoin Era advocates argue is that currency can be used as a way to encourage financial inclusion, to give access to the system to people who do not have bank accounts. However, the CEO of Mastercard does not agree much with this view, stating that „Bitcoin is too volatile for financial inclusion.
The statement was made during the Fortune Global Business Forum, an important financial event held this week. Ajay Banga is the CEO of Mastercard, one of the largest card manufacturers and payment processors in the world. He explained that Bitcoin does not have the structural capabilities to ensure global financial inclusion.
When the CEO was asked about the potential of the asset to realize this inclusion, which is one of the main points of currency creation, Banga explained that the lack of clarity about who developed Bitcoin is a little worrying. Soon after he stated that the volatility of the digital asset is a problem to achieve this goal.
„Can you imagine someone who is excluded from the financial system trading in some way that could include it through a currency that costs the equivalent of two bottles of Coca-Cola today and 21 tomorrow? That’s not how you include those people. That’s a way to make them scared of the financial system“.
For Mastercard CEO the solution are the Digital Currencies of Central Banks
The Yuan Digita (from China)l is still the most advanced CBDC in the world.
For the executive part of the solution to the problem will be in the Central Bank Digital Coins (the CBDCs). These currencies have become an important point of discussion in the cryptomarket recently, especially with the Digital Yuan in advanced stage of development.
Although I don’t have many opinions about the CBDCs, for the CEO of Mastercard the digital fiduciary currencies can improve the financial and commercial flow around the world;
„A fiduciary currency, if it were digital, could be useful in international trade flows and in improving their efficiency, for sure“.
The CBDCs are being a great bet for different governments to facilitate the whole functioning of the internal and external financial system and even the way in which citizens act with money. Here in Brazil we still do not have the development of a digital Central Bank currency, but PIX is a step in this more digitalized and facilitated system.
The CEO also stressed that he is ready to work with the Central Banks to help develop these systems.