More Bubble Talk: Visa CFO Loses His S**t on Bitcoin
Vasant Prabhu, CFO of card leader Visa, can’t seem to come to terms with bitcoin.
He didn’t hold back his ire for the decentralized network to the Financial Times, instead pointing to its appeal for “every crook and dirty politician” not to mention clueless speculators. Visa’s Prabhu has been “shocked” by misguided retail investors who know just enough about bitcoin to be dangerous.
Bitcoin fever is everywhere, and it’s insulting to the top finance executive of a global payments company whose brand is weaved throughout a centralized banking system. He calls them “true believers,” saying he’s a “dinosaur” to bitcoin enthusiasts who live among him in his San Francisco community.
Mr. Prabhu sees all the makings of a bubble, based on the quick profits that even people close to him are generating, with one relative having doubled their funds with cryptocurrency.
US banks and have moved to ban credit card payments for cryptocurrencies, while Sweden’s Nordea has banned its employees from owning BTC. While Visa payments aren’t processed in bitcoin, the company falls short of prohibiting its customers from transacting with bitcoin. But that doesn’t mean Visa’s Prabhu has to like it.
KYC and AML
Visa strongly enforces know-your-customer (KYC) and anti-money laundering protocols, which is yet another reason that bitcoin irritates the company’s finance chief. Cryptocurrencies, he suggests, line the criminal toolbox.
Meanwhile, the involvement of bitcoin in fraudulent activity is on the decline amid the traceability factor for digital wallets and a transparent public ledger, as per a report by security firm Bromium cited in Market Watch. But that doesn’t mean scamsters, who get away with $200 billion in fraudulent profits yearly, are turning away from cryptocurrencies altogether. They’re preferring more anonymous coins, such as Monero.
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