Jamie Dimon of J.P. Morgan and UBS' Sergio Ermotti have made clear they don't trust bitcoin. Where does Credit Suisse boss Tidjane Thiam stand on the cryptocurrency boom?
Bitcoin, the world's best-known cryptocurrency, hit a new record on Thursday, surpassing $ 7,100. J.P Morgan's Chief Executive Jamie Dimon has already bashed bitcoin and its buyers in crude terms, while at UBS Sergio Ermotti has said the world's ultra-wealthy are skeptical about the cryptocurrency.
What about Credit Suisse, an investment bank which had traditionally been quick at adapting new technology such as high-frequency trading?
Chief Executive Tidjane Thiam left little doubt of his views when asked about bitcoin at the Swiss bank's results: «It has no use,» he told journalists. The only reason that people deal in bitcoin is to make money, «which is the very definition of speculation and the very definition of a bubble.»
«In the history of finance that has rarely led to a happy ending,» Thiam summarized – echoing Dimon's views succinctly and diplomatically.
Blockchain? Yes. Bitcoin? No.
Banks like J.P. Morgan, UBS and Credit Suisse are hot on blockchain and its underlying distributed ledger technology, which promises more efficient securities trading, for example. But large firms have been decidedly cool on cryptocurrencies: either as investments for their clients or, as finews.com reported this week, to do business with.
Smaller firms like Falcon Private Bank and Bank Vontobel have embraced bitcoin and other cryptocurrencies more openly. Don't expect Thiam to change his mind anytime soon.
«I think most banks in the current state of regulation have little or no appetite to get involved in the currency which has such anti-money-laundering challenges, and that’s our position,» he said.
