Bitcoin has no destiny since of the anonymity, SocGen CEO says

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SocGen CEO sees no destiny for bitcoin, cryptocurrencies

Bitcoin and cryptocurrencies are doubtful to tarry long-term as governments hasten to umpire them, according to a arch executive of French banking hulk Societe Generale.

Frederic Oudea pronounced that, while he was a follower in distributed bill record — that allows information to be stored in huge volumes opposite a secure network of computers — practical currencies lift too many risk due to their anonymity.

“The advantage so distant is it provides anonymity to a people who are creation a transactions,” Oudea told CNBC on a sidelines of a Web Summit discussion in Lisbon, Portugal, on Tuesday.

“I can’t see a destiny of this when we see a courtesy played by all governments and regulators on anti-money laundering, on anti-tax evasion, on anti-terrorism financing. The anonymity of a transaction is a problem we consider that would put vigour on bitcoin.”

Societe Generale has itself experimented with a blockchain-based trade financial platform. But Oudea said: “I cite to use a word distributed bill record and not blockchain.”

Blockchain record was creatively combined to offer as a digital record of all bitcoin transactions. But now companies are looking during other use cases of a technology.

Oudea pronounced he was “not convinced” digital currencies would “see any development.”

“I’m some-more a follower of a distributed bill record where we have a tangible set of players (that are) well-identified,” he said. “We select this brew of crypto record to secure transactions.”

We are totally committed to complaints

The executive suggested he was open to a thought of a practical banking that could be corroborated adult by fiat currency, though pronounced that cryptocurrencies were too unsure to be deliberate for mainstream use.

“I consider we need to be a bit some-more accurate on what we call practical banking during a finish of a day. If it’s only a approach in a transaction, during some indicate to supplement something that probably can interpret on both sides into genuine currencies, maybe it can be used as a system. The blockchain complement and a bitcoin complement is really different.”

Crypto criticisms

Oudea joins a prolonged list of bank executives to impugn bitcoin and cryptocurrencies.

Last week, a arch executive of Credit Suisse pronounced that bitcoin was “the really clarification of a bubble.”

“I consider many banks in a stream state of law have small or no ardour to get concerned in a banking that has such anti-money laundering challenges,” Tidjane Thiam said.

Sergio Ermotti, arch executive of UBS, pronounced he was “not necessarily” a follower in cryptocurrencies. But, like many other banking chiefs, Ermotti pronounced that he believed there was “a destiny for blockchain technology.”

Last week, bitcoin, a world’s largest cryptocurrency, soared above $7,000 for a initial time. A day after, it reached another all-time high, leading $7,400.

The cryptocurrency has also drawn regulatory concerns. Authorities in China done a preference to tighten down internal bitcoin exchanges in September, a pierce that saw a proxy drop in a price.

Karen Tso


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