Showing posts with label Credit Suisse. Show all posts
Showing posts with label Credit Suisse. Show all posts

November 04, 2017

Bitcoin is the “very definition of a bubble” - Credit Suisse CEO

By Francisco Memoria - November 04, 2017 (

At a time in which bitcoin reaches a new record high around the $7,500 mark and catapults the cryptocurrency market cap above the $200 billion mark for the first time in history, Credit Suisse CEO Tidjane Thiam makes it clear that he isn’t a fan of the cryptocurrency, as he stated it was the “very definition of a bubble” while speaking at a news conference in Zurich.

The CEO expressed caution as interest in bitcoin could eventually subside. He noted that right now people are buying the cryptocurrency expecting a price rise that will help them make money, not as a store of value, meaning it is a bubble. He notably stated:

“From what we can identify, the only reason today to buy or sell Bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble.”

Tidjane Thiam added that bitcoin currently presents a number of challenges, and expressed concern over its anonymity, as to him it is particularly problematic for financial institutions that, given the potential money-laundering risks, are likely not to get involved with the cryptocurrency. He added:

“Bitcoin presents a number of challenges. The first of them is really the anonymity. (…) I think most banks in the current state of regulation have little or no appetite to get involved in a currency which has such anti-money laundering challenges".

Analysts believe that more institutional investors are going to enter the cryptocurrency ecosystem, as one of the largest derivatives exchange in the world, CME Group, recently decided to launch bitcoin futures.

Given his words, Thiam now joins a list of bankers and Wall Street executives who believe bitcoin is a bubble. Among them are Berkshire Hathaway CEO and billionaire investor Warren Buffet, who warned there’s a “real bubble” in bitcoin as, according to him, the cryptocurrency cannot be valued because it isn’t a value-producing asset.

Earlier this year, JP Morgan CEO Jamie Dimon also criticized bitcoin by calling it a “a fraud” and stating he would fire anyone in his financial institution trading it. Later on, Dimon stated that the cryptocurrency was “worth nothing” before taking a third shot at the cryptocurrency and its investors, notably stating that anyone “stupid enough to buy [bitcoin] will pay the price.”

Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund, also stated that bitcoin is a bubble, as it met his firm’s criteria for it., partly because some investors buy coins to later on sell them at a higher price, and because of its volatility.

On the other hand, some aren’t as dismissive of bitcoin. Goldman Sachs CEO Lloyd Blankfein recently told Bloomberg he wasn’t willing to “pooh pooh” the cryptocurrency, despite having a certain “level of discomfort with it” as is the case with anything new. Morgan Stanley CEO James Gorman also recently stated that bitcoin is “more than just a fad” that “isn’t inherently bad.”

Featured image from Flickr/Africa Progress Panel.

Posted by Francisco Memoria
Francisco is a cryptocurrency writer who's in love with technology and focuses on helping people see the value digital currencies have. Twitter:

October 20, 2017

‘The Sky’s the Limit’ for Blockchain Technology - A Credit Suisse banker

By Rebecca Campbell - October 20, 2017 (

As major banks reject the notion of bitcoin, many are turning their attention to the use of the blockchain.

According to an investment banker from European bank Credit Suisse, the ‘sky’s the limit’ for the technology.

James Disney, Credit Suisse’s global head of software investment banking, said that it takes 20 to 30 days to close and settle private equity transactions. Yet, with the blockchain this could be reduced to minutes.

Speaking with CNBC’s ‘Fast Money,’ Disney said:

"If you add up all of our volume over the quarter, that’s hundreds of billions of dollars we’re able to free up and take out of the system to use for other purposes".

Credit Suisse has been experimenting with the distributed ledger to test the environment for future use.

New York City-based blockchain technology company Symbiont teamed up with Credit Suisse and a number of banks forming the R3-led consortium in 2016 to demonstrate how the technology can be used in the syndicated loan market.

The Swiss bank has also taken part in the completion of a smart contracts blockchain test. Over a four-month period from October 2016, a number of banks and financial firms tested a prototype developed by blockchain firm Axoni for over-the-counter (OTC) equity swaps.

Credit Suisse appear keen on developing the technology’s use further with a plenty of innovation going across the bank and in all regions, Disney said.

"It has the potential to really streamline our operations, and that of all in financial services".

Talking about bitcoin, Disney said that it has become the first ‘killer app’ for blockchain. Comparing it to email as the first ‘killer app’ of the Internet, he believes that more innovation will develop with the blockchain through the years.

He added:

"I think the sky’s the limit, really. We’re in the very, very early stages here".

Featured image from Shutterstock.