UBS: We do not want to have anything to do with Bitcoin
Financial Services UBS does not want to work with Bitcoin or other crypto currencies, a bank executive now said.
Mark Haefele, Chief Investment Officer (CIO), said in an interview with Bloomberg that the lack of legal regulation and the "critical mass" keep the company, which is the largest bank in Switzerland, away from the cryptocurrency market.
Haefele also considers it possible that the government could ban Bitcoin in the future. He cited the financing of terrorism as a reason, which also rates UBS as a disadvantage of the cryptocurrency.
He said:
"Only a terrorist attack in the United States funded by Bitcoin would be enough for the US government to take action. That's a risk, an unquantifiable risk that Bitcoin has and other currencies are not. "
Since Bitcoin is not distributed by any government, it could be used to avoid being controlled. Haefele, however, assumes that this situation will soon change.
An urgent question therefore is when to stop investing in Bitcoin.
Haefele is not UBS's first public concern over Bitcoin. Even the head of the Department of Economic Affairs, Paul Donovan, criticized. In tweets he compared the cryptocurrency with the tulip mania in the Netherlands.
CEO Sergio Ermotti also told CNBC last month that he is more interested in blockchain than cryptocurrency.
Mark Haefele, Chief Investment Officer (CIO), said in an interview with Bloomberg that the lack of legal regulation and the "critical mass" keep the company, which is the largest bank in Switzerland, away from the cryptocurrency market.
Haefele also considers it possible that the government could ban Bitcoin in the future. He cited the financing of terrorism as a reason, which also rates UBS as a disadvantage of the cryptocurrency.
He said:
"Only a terrorist attack in the United States funded by Bitcoin would be enough for the US government to take action. That's a risk, an unquantifiable risk that Bitcoin has and other currencies are not. "
Since Bitcoin is not distributed by any government, it could be used to avoid being controlled. Haefele, however, assumes that this situation will soon change.
An urgent question therefore is when to stop investing in Bitcoin.
Haefele is not UBS's first public concern over Bitcoin. Even the head of the Department of Economic Affairs, Paul Donovan, criticized. In tweets he compared the cryptocurrency with the tulip mania in the Netherlands.
CEO Sergio Ermotti also told CNBC last month that he is more interested in blockchain than cryptocurrency.
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