As though they have not had their fair deal of rejection and disapproval, cryptocurrencies face yet again another sting opposition in the Swiss business sector. This time around not from some regulatory body, but from the Union Bank Of Switzerland, UBS. UBS’ chairman, Alex Werber, has made it clear this week that the bank is in no way supporting cryptocurrencies like bitcoin.
The chairman stated this in reassurance to the public that the bank is and will not be carrying out any form of cryptocurrency transactions for its customers. The reason for the bank’s decision being that cryptocurrencies aren’t “transparent” and thus require more regulatory rules. This kind of statement coming from one of the largest financial institutions in the world is definitely not good news for the cryptocurrency world.
The bank’s chairman believes that cryptocurrencies aren’t really something you can bank on but rather thrive more on speculations. What’s worse, because cryptocurrency transactions are basically not back traceable they can be used for all sort of illegal acts and no one will ever notice. According to him, cryptocurrencies essentially don’t have the features that fiat currencies have which make them currencies. Thus, cryptocurrencies to him aren’t even currencies at all to begin with. What must be noted however is the fact that Alex believes in the power of blockchain technology and thinks it is worth delving into because it becomes of value to both the client and bank in the end.
“Because money has three functions to fulfill: it has to be a means of payment – as such, Bitcoin is not universally accepted. Second, money is a measure of value. But there are no prices that are written in Bitcoin. And third, it must be suitable as a store of value. Bitcoin does not fulfill this condition either since the price of Bitcoin is not stable. A fundamental disadvantage of Bitcoin is that the number of coins dispensed is limited.”
With these statements, UBS joins the list of international financial institutions like Deutsche Bank who have openly spoken against bitcoin and cryptocurrencies at large.
Featured Images via Advisorhub.
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