Even though its value kept decreasing for the past weeks, Bitcoin is still the world’s leading cryptocurrency, but this can change in the near future according to UBS Group AG Chairman Axel Weber.
A report from Fortune reveals that the leader of the Swiss bank declared that they won’t trade Bitcoin or offer it as an alternative to retail clients, fearing that increased regulation could lead to a huge drop in value.
The volatilty of the coin is raising serious question marks
“This is something where the price is really unclear,” Weber said in an interview for Bloomberg TV. “We fear that in the future if these investments implode and the market corrects, then investors will be looking at ‘who sold us this?’”
From a certain point of view, he might be correct about this. As you probably know, South Korea is currently debating a potential ban on cryptocurrency exchanges, invoking concerns about money laundering, as well as tax evasion. China is also considering a similar move, in an attempt to control the blockchain technology.
Back to Europe, the European Commission said this month that they’re also considering ramping up regulation of virtual currencies, as the signs of a pricing bubble are clear. As a side note, Nordea Bank AB already restricted Bitcoin and other cryptocurrencies trading among its employees.
Right now, every increase in Bitcoin demand will automatically result in a price increase, Mr. Weber said. He also asked regulators to focus on Bitcoin, which is now trading at $11,148.51. In contrast, on December 18, when it was close to its historical high, it reached $18,675.
Banks still don’t have full confidence in the coin
Several banks across Europe expressed their doubts regarding investments in cryptocurrency. Russia took everything one step further, calling it “fake currency” and declaring that governments don’t agree with a growing market of money not printed by a country.