Financial services giant UBS has no plans to get involved with bitcoin or other cryptocurrencies, according to a single of its senior executives.
In an interview with Bloomberg, UBS chief investment officer Mark Haefele mentioned that a lack of government oversight and “crucial mass” about cryptocurrencies is maintaining the firm – Switzerland’s largest bank – out of the industry.
Haefele also said that the concept the government could crack down on bitcoin, citing its achievable use for terrorism financing, has also dampened any prospects of UBS obtaining involved.
He told Bloomberg:
“All it would take would be one particular terrorist incident in the U.S. funded by bitcoin for the U.S. regulator to a lot much more seriously step in and take action. That’s a risk, an unquantifiable danger, bitcoin has that an additional currency does not.”
Simply because bitcoin isn’t sponsored or backed by any government, it can be employed to stay away from getting monitored, he argued. Nonetheless, Haefele added that he does not think this predicament will final.
He went on to say that the prevailing query around investing in something is when to get out, asking: “So how do you know when to get out of a bitcoin investment?”
Haefele is not the very first UBS member to openly express issues about bitcoin. The company’s chief economist, Paul Donovan, compared bitcoin to the Netherlands’ 1637 tulip mania in a series of tweets earlier this month.
And the chief executive of UBS, Sergio Ermotti, told CNBC last month that he he far a lot more bullish on blockchain than he is about cryptocurrencies specifically.
UBS image by way of YouTube
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Published at Fri, 17 Nov 2017 21:00:51 +0000