Bitcoin Has No Future Due To Its Anonymity

Bitcoin and digital currencies are not going to survive long-term as governments scramble to control them, in step with the chief executive of French banking company Societe Generale. Frederic Oudea noted that, even as he was a believer in distributed ledger technology, which permits information to be saved in huge volumes throughout a secure network of computer systems, digital currencies carry an excessive amount of danger because of their anonymity.

Frederic Oudea stated:

“The advantage thus far is it offers anonymity to those who are making the transactions. I cannot see a future of this once I see the attention performed by all governments and regulators on anti-money laundering, on anti-tax evasion, on anti-terrorism financing. The anonymity of the transaction is an issue I assume which might put pressure on bitcoin.”

Bitcoin

Blockchain was initially created to serve as a digital log of all bitcoin transactions. However, now organizations are searching at different use instances of the technology. Frederic Oudea mentioned that he was not satisfied cryptocurrencies would see any improvement.

Frederic Oudea stated:

“I’m more a believer of a dispensed ledger technology in which you have a described set of players that are properly-recognized. We choose this combination of crypto technology to secure transactions.”

The executive suggested he was open to the concept of a digital currency that could be backed up by fiat currency, but stated that digital currencies were too unstable to be taken into consideration for mainstream use.

Frederic Oudea stated:

“I suppose we need to be a bit more particular on what we call digital currency on the end of the day. If it is only a way in a transaction, eventually to add something, which actually can translate on each aspects into real currencies, perhaps it may be used as a system. The blockchain system and the bitcoin system may be very special.”

Frederic Oudea

Frederic Oudea joins a long list of bank executives to criticize bitcoin and digital currencies. Remaining week, the chief executive of credit Suisse mentioned that bitcoin was the very definition of a bubble.

Tidjane Thiam said:

“I suppose most banks within the modern state of law have little or no appetite to get involved in a currency which has such anti-money laundering challenges.”

Sergio Ermotti, chief executive of UBS, said he was not a believer in digital currencies. However, Sergio Ermotti mentioned that he believed there was a future for blockchain. Remaining week, bitcoin, the world’s biggest digital currency, soared above $7000 for the primary time. A day after, it reached another all-time high, surpassing $7400. The digital currency has drawn regulatory worries. Government in China decided to shut down local bitcoin exchanges in September, a move that saw a brief dip within the price of bitcoin.

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