Oct 27, 2017 by Andrei Calina

UBS CEO Sergio Ermotti said that he’s not truly a believer in cryptocurrencies, but he likes any project that involves a blockchain. He added that distributed ledger technology would afford financial institutions to cast their transactions at a cheaper, more efficient level, confirms CNBC.

The 57-years old Swiss banker considers that cryptocurrencies still need to be “defined,” but sees the mechanism involved as one that should help transform the financial services. UBS has been involved in a blockchain project, entitled Batavia, with IBM and other banks, yet its CEO is not that crazy after virtual currencies.

Blockchain, backed by more and more important leaders

“Not necessarily cryptocurrencies, I think that needs to be defined, but I believe there is a future for blockchain technology, and technology will play a big role in changing and reshaping our industry,” said Sergio Ermotti. A blockchain allows data to be stored across a network of computers around the world rather than at one single location.

Speaking about Batavia, Ermotti revealed its strategy, saying that they’re trying to initiate and get as many other financial institutions and clients into teams like trade finance with other banks. He thinks that the technology would form a shield that would enable financial institutions to be more productive and work cheaper.

Bitcoin, the target of many critics

Sergio Ermotti is one of the few banking executives who haven’t been critical on Bitcoin. PMorgan’s Jamie Dimon has called it a “fraud,” adding that he couldn’t care less for cryptocurencies. However, he likes blockchain, believing that it’s a good technology.

This week, China Renaissance CEO Fan Bao joined the list, saying that Bitcoin was “getting a little bit bubblish.” “I think we have to separate bitcoin from the blockchain. Blockchain is very exciting technology, probably the most disruptive technology in our industry, the financial services industry,” added the Chinese investment banker.