UBS Chair Axel Weber: In My Mind, Bitcoin Doesn’t Fulfill Currency Functions

October 5, 2017 6:39 pm Published by

The chairman of UBS claims – in his opinion – bitcoin does not fulfill the functions of a currency, reported Thursday.

Axel Weber joins a growing number of bankers dismissing the cryptocurrency, a list that includes JP Morgan CEO Jamie Dimon.

Weber, speaking at a financial conference in Zurich this week, dismissed bitcoin’s potential.

Reuters reported Weber claimed his bitcoin skepticism “probably comes from my background as a central banker.”

The most important function of a currency is, it’s a means of payment,” he continued, “it has to be generally accepted, it has to be a store of value and it’s a transaction currency. Bitcoin is only a transaction currency.”

Weber has previously claimed private currencies like bitcoin will “always be boom and bust…because there is no lender of last resort,” according to a City A.M report in November 2015.

The ‘lender of last resort,’ the report said, is a role typically taken by a central bank where the entity has the authority to change the supply of money during a financial crisis.

Weber’s bitcoin comments followed the much-publicized comments by Dimon, who called bitcoin “a fraud” that is “worth nothing.”

Other major Wall Street figures, the report said, such as Goldman Sachs CEO Llyod Blankfein revealed a more neutral take on bitcoin in a public social media post this week.

Conversely, Morgan Stanley CEO James Gorman recently called bitcoin “a fascinating development that’s certainly something more than just a fad.”, Jack Durschlag

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