UBS CIO Says They Won’t Get Involved With BitcoinNovember 17, 2017 10:01 pm
Financial services giant UBS said they had no upcoming plans to get involved with bitcoin or other cryptocurrencies, according to CoinDesk.
UBS Chief Investment Officer Mark Haefele said that a lack of government oversight and “critical mass” around cryptocurrencies is prohibiting Switzerland’s largest bank from entering the market in an interview with Bloomberg.
Haefele also said the government could someday crack down on bitcoin and cited problems with its possible use for terrorism financing and money laundering, dampening any prospects for UBS to get more involved with cryptocurrency.
“All it would take would be one terrorist incident in the U.S. funded by bitcoin for the U.S. regulator to much more seriously step in and take action. That’s a risk, an unquantifiable risk, bitcoin has that another currency doesn’t.”
Haefele said bitcoin isn’t sponsored or supported by any government and could be used to avoid monitoring, but also said that situation of no regulation won’t last forever.
Haefele also questioned about the risky prospect bitcoin, pondering: “So how do you know when to get out of a bitcoin investment?”
Haefele is also not the first UBS executive to express skepticism over bitcoin.
The company’s chief economist, Paul Donovan, compared bitcoin to the tulip mania in the Netherlands during 1637 in a series of tweets earlier this month.
Chief executive of UBS, Sergio Ermotti, also told CNBC last month that he was far more bullish on the blockchain than cryptocurrencies in general.
-WN.com, Maureen Foody