Monday, February 17, 2014

Mastercard CEO on Bitcoin

This is the first comment that I have seen from the big three, Visa, Mastercard and Amex.

Reports WSJ's Francesco Guerrera:
Ajay Banga, chief executive of Mastercard Inc spoke for many skeptics last week when he said in an interview: “The world is not short of currencies, so what is this currency solving for?”
He is more correct than he knows. Cash offers anonymity and gold and silver offer anonymity and protection against price inflation.

Guerrera also points out the recent problems Bictoin is having:
Of late, though, bitcoin’s three bulwarks have come under fire. Its anonymity has caught the attention of regulators and law-enforcement agencies because of alleged money laundering. Its immunity to cyberattacks was called into question last week when the three main bitcoin exchanges had severe problems. And the currency’s place on the fringes of the financial system has proved a limitation because most banks refuse to facilitate bitcoin transactions. To make matter worse, bitcoin’s price now is almost half of what it was at its peak.
As for a more efficient money transfer mechanism, I suspect it will be PayPal (See:  PayPal President's Credit Card Hacked for Shopping Spree)


  1. What cash and gold don't offer that Bitcoin can do better: Portability, concealability, defensibility, low cost instant payments across distance.

    What PayPal doesn't offer: Irreversible, and low cost transactions without third-party interference (person to person payments without interference.

    It is no surprise that the CEO of Mastercard doesn't like Bitcoin. First they ignore you, then they laugh at you, then they fight you, then you win. The "honey badger" of money says "bring it on"!

    1. Dude, give it up already! You don't even realize you're Nero fiddling away. Shitcoins are nothing and never will be. what are they trading at now? $200?? haha and you said to buy at $1200. aren't you glad you didn't take my bet...not that you ever would have! You would have lost your shirt! At least Paypal is insured and they've actually covered my transactions when I used Paypal on eBay. a few times I didn't get what I ordered and they reimbursed my money with no trouble at all. When your precious shitcoins are gone or stolen there's no recourse whatsoever. never mind the fact that they're incredibly volatile and not worth shit. shitcoins! bwahahahaha

      BUY GOLD and silver!!!

    2. Badger, wrong: "concealability, defensibility, low cost instant payments"

      1 expose you by IP, permanently recording
      2 not against recent successful hacks, theft, co-mingling with currency involved in illegal activity
      3 low cost?not for high density payments, delays/vol and to a limited group who will accept

  2. PayPal will not likely be the payment of choice for the future unless they make some pretty drastic changes.

    They currently charge a mean percentage for all transactions, regardless of source.

    They will hold payments for up to 21 days without notice and with no published guidelines detailing how they make such decisions, nor do they provide pre-approval options to avoid such delays.

    They will confiscate funds without justification.

    They have pissed off a huge number of vendors who will never do business with them under any circumstance.

    Many tech blog writers strongly hate PayPal, thus PayPal will forever receive negative PR from these outlets.

    I believe some solution using the bitcoin infrastructure to make transfers, especially in the small B2B realm, will arise. However, it will have to operate outside the NACHA-bankster racket, which blocks small businesses from getting the incredible transaction savings that large businesses get.

  3. Well, you can use it in unregulated transactions to purchase illegal items without the banksters taking their cut and without having all your personal details auto-appended to the bankster logs.

    It's not auto-inflated at will by the US to purchase overseas dictators and nations.

    Not that BTC is a solution to anything, just one iteration of digital currency, like USD for instance, without the additional paper titles, which isn't exactly a differentiator. The difference between USD and BTC of course: one is imposed by state law