Mastercard complains of fall because of the ban banks to buy cryptocurrency with credit cards

Mastercard complains of fall because of the ban banks to buy cryptocurrency with credit cards

As CNBC reports quarterly Mastercard decreased due to the reduction in the number of customers who buy cryptocurrency using a credit card.

Earlier this year some of the largest banks in different countries have imposed a moratorium on the purchase of cryptocurrencies through credit. Among them are such giants of the banking industry of the U.S. as Bank of America, JPMorgan Chase and Citigroup. The Bank explained its decision by the fact that in this way it wants to protect the funds of its own customers.

In the fourth quarter of 2017 the volume of international transfers of Mastercard grew by 19 percent, and in the first quarter this figure fell by 2 percent.

Chief financial officer Mastercard’s Martina Hund-Mezhan said that one of the reasons was “the recent ban on the purchase of cryptocurrency”, although, according to the company, growth of volumes of international transfers needs to continue. Mastercard CEO Ajay Banga referred to the uncertain situation with cryptocurrencies in Asia:

Even in Japan lots of problems, as one of the largest cryptocurrency exchanges in the country was hacked. Now the interest in cryptocurrency is much less compared to what we saw at the end of the fourth quarter of 2017 and the beginning of the first quarter of 2018.

He further stated that digital currency is not a major part of their corporate strategy, because it is difficult to predict how the sector will develop the:

This is not what we expect, because we just don’t know how to predict the market.

In October last year, Ajay Banga spoke strongly against digital currencies, which are not supported by the government:

If the government will create a digital currency, we will find a way to get into the game. And any non-state currency is rubbish.

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