Just recently, the CEO of another bank said that the currency is a fraud and is bound to crash
The chief at Royal Bank of Canada has raised some issues with Bitcoin, but unlike his counterpart at JP Morgan Chase, he does not believe that the currency is a fraud.
RBC CEO David McKay was quoted in a report on Cryptocoins News as saying that he would never call Bitcoin a fraud due to the fact that it is not misrepresenting what it is.
"People have placed value on what it is in different ways -- and they’re fine to do that -- but it’s not fraudulent in its misrepresentation," he said.
Just recently, JPMorgan Chase CEO Jamie Dimon remarked that the currency is a fraud, noting that Bitcoin will never work. He even said that the currency is bound to crash.
Reuters quoted him saying. "You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”
For McKay's part, his problem with Bitcoin boils down to his lack of confidence about it being used as a currency.
"There’s so many elements of a bitcoin that don’t convene to our current perspective on what a unit of currency should do. There are some real concerns about how the bitcoin is being used that we have to resolve," he said.
In a separate report on Cryptovest, Citigroup CEO Michael Corbat expressed the same concern.
"When we look at bitcoin, we all think and believe that the underlying blockchain technology [is] very valuable. When I look at bitcoin itself, I struggle a bit. What is it? Is it a currency? I don't necessarily think it is. Is it a speculative investment? Probably more so," he said, pointing out that it could be used for tax evasion and for money laundering.
The two banks, however, are interested in the blockchain technology and its applications in the financial solutions space. Even JPMorgan has already made an investment in the said tech.
It was reported recently that JPMorgan partnered with Royal Bank of Canada and the Australia and New Zealand Banking Group to launch their Interbank Information Network (IIN).
McKay said the blockchain technology is targeted to speed up payment processing and clearing amongst member banks.
"We’re on a journey to look at the strengths and weaknesses, the security protocols. You’ve got three banks that are off the ground and running in cross-border payments, so you’ve got to test it with partners and we certainly want to be part of that," he said.
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RBC CEO David McKay was quoted in a report on Cryptocoins News as saying that he would never call Bitcoin a fraud due to the fact that it is not misrepresenting what it is.
"People have placed value on what it is in different ways -- and they’re fine to do that -- but it’s not fraudulent in its misrepresentation," he said.
Just recently, JPMorgan Chase CEO Jamie Dimon remarked that the currency is a fraud, noting that Bitcoin will never work. He even said that the currency is bound to crash.
Reuters quoted him saying. "You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.”
For McKay's part, his problem with Bitcoin boils down to his lack of confidence about it being used as a currency.
"There’s so many elements of a bitcoin that don’t convene to our current perspective on what a unit of currency should do. There are some real concerns about how the bitcoin is being used that we have to resolve," he said.
In a separate report on Cryptovest, Citigroup CEO Michael Corbat expressed the same concern.
"When we look at bitcoin, we all think and believe that the underlying blockchain technology [is] very valuable. When I look at bitcoin itself, I struggle a bit. What is it? Is it a currency? I don't necessarily think it is. Is it a speculative investment? Probably more so," he said, pointing out that it could be used for tax evasion and for money laundering.
The two banks, however, are interested in the blockchain technology and its applications in the financial solutions space. Even JPMorgan has already made an investment in the said tech.
It was reported recently that JPMorgan partnered with Royal Bank of Canada and the Australia and New Zealand Banking Group to launch their Interbank Information Network (IIN).
McKay said the blockchain technology is targeted to speed up payment processing and clearing amongst member banks.
"We’re on a journey to look at the strengths and weaknesses, the security protocols. You’ve got three banks that are off the ground and running in cross-border payments, so you’ve got to test it with partners and we certainly want to be part of that," he said.
For more of Wealth Professional's latest industry news, click here.
Related stories:
Financial firms still lack effective fintech strategy
Big Six bank forges partnership with fintech fund
