The Chief Executive Officer of the Royal Bank of Canada, David McKay, has mentioned that he would never call bitcoin a fraud, but he admits that he does have real concerns about the currency.
David McKay stated:
“I’d never call it a fraud as it’s not misrepresenting what it is. People have placed value on what it is in special approaches and they’re pleasant to try this, but it’s not fraudulent in its misrepresentation.”
This is in comparison to Jamie Dimon, Chief Executive Officer of JPMorgan Chase, who called bitcoin a fraud remaining month. From that time then the banker has come out towards bitcoin stating it’s‘worth nothing, and that bitcoin traders will pay the price. In step with Jamie Dimon, even though bitcoin was buying and selling at $100000 its price will ultimately crash. However, even as David McKay does not label the digital currency a fraud he does have worries about it.
David McKay stated:
“There’s such a lot of factors of a bitcoin that don’t convene to our modern attitude on what a unit of currency should do. There are a few actual issues about how the bitcoin is being used that we need to solve.”
In a bid to answer this, the bank is looking similarly into the technology behind it, the blockchain. In March, it was stated that the Royal Bank of Canada was one among six banks that had formed Ripple’s international payments steerage organization. The purpose is to deal with quicker move-border payments. The opposite banks consist of Bank of America Merill Lynch, Santander, UniCredit, Standard Chartered, and Westpac Banking Corporation.
Chris Larsen, Ripple co-founder, and the-then chief executive Officer of Ripple, said:
“Nowadays, people anticipate money to transport at the speed of the internet. That’s why we’re operating with these top banks to cope with the want for quicker cross-border payments.”
Royal Bank, JPMorgan and Australia and New Zealand Banking Group Ltd. are working collectively on an initiative known as the Interface data network to process quicker payments using blockchain technology.