Cryptoskeptic Ajay Banga will be the next president of the World Bank
US President Joe Biden nominated former MasterCard CEO Ajay Banga to lead the World Bank on Thursday. In particular, the leader has been critical of crypto in the past.
In a statement, the White House called Banga “a business leader with extensive experience leading successful organizations in developing countries and forging public-private partnerships to address financial inclusion and climate change.”
Will Banga be transformative for crypto?
The new president is expected to take over from David Malpass by May. Malpass announced his departure from the World Bank last week. Meanwhile, Banga is currently the vice chairman of General Atlantic. Previously, the 63-year-old was president and CEO of Mastercard.
President Biden noted, “Ajay is uniquely equipped to lead the World Bank at this critical moment in history … He has a proven track record of managing people and systems, working with global leaders around the world to deliver results.”
Meanwhile, Vice President Kamala Harris has predicted that Banga “will be a transformative president of the World Bank.” However, he could also be transformative for the crypto industry.
New World Bank president has been critical of BTC
Back in 2018, Banga referred to cryptocurrency as “garbage”. He emphasized, “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 any medium of exchange deserves to be considered a medium of exchange.”
He also made it clear in 2020 that he does not believe that today’s digital currencies, such as Bitcoin, will significantly contribute to increased financial inclusion. “Bitcoin itself is volatile in its valuation,” Banga noted at the Fortune Global Forum conference.
“Can you imagine someone who is economically excluded acting in a way to be 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. It’s a way to make them afraid of the financial system,” he added.
Instead, he has pushed to digitize fiat currencies to revolutionize cross-border flows.
That said, Banga’s appointment comes as crypto legislation in the US faces a political divide. Some Republicans have come forward to blame the SEC for the FTX crisis, while Democrats are pushing for stricter regulations. This has stalled crypto bills in Congress.
Disclaimer
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