This week, for the first time ever the World Economic Forum in Davos (Switzerland) is holding a session “The Crypto-Asset Bubble”. Scheduled for 17:00 GMT on Thursday, January 25 Jan 2018, the session has been created in the partnership with Yicai.
As it is mentioned in the press-release of the Davos session, the value of bitcoin has surpassed unexampled levels, whereas there about other alternative cryptocurrencies. Therefore, during the session, such speakers as Robert J. Shiller, Sterling Professor of Economics at Yale University, Yang Yanqing, Deputy Editor-in-Chief at YICAI Media Group, Cecilia Skingsley Deputy Governor at Swedish Central Bank as well as others, will discuss whether cryptocurrencies will lead to the next financial crisis or not.
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Reflections on Cryptos & Banks
According to The Financial Times, the financial establishments all over the globe are currently trying to answer a question of whether to stand idly or pile into virtual money. Governments are worried about money laundering in the countries. That is why the discussion has spread even to the WEF. But before the session takes place, FT offers some other commentaries on cryptos and blockchain.
For example, Adam Ludwin , who is the CEO at Chain, the company which supplies financial groups with blockchain setups, believes that virtual assets have been beneficial primarily for one reason – they are resistant to regulation. No phenomenon can stop the crypto transaction as it is made between only two parties, without any intermediaries like banks. For such views, Ludwin has been receiving much criticism.
The ex-chief info officer at UBS, which consults on ICOs Oliver Bussmann , in his turn, says that with cryptos now overshadow banks.
“Crypto-asset managers are coming up to speed like crazy because the banks are standing still while demand is rising from family offices and other big investors,” said Bussmann.
On the other hand, banks understand the threat and try to curb on crypto innovations, e.g., initial coin offerings. The chief innovation officer at Dutch bank ING Benoit Legrand says that banks accept the fact that the financial world is transforming, but some control is still necessary though.
“The world will include cryptocurrencies in the way we work in the next 10 years. But it needs to be regulated. This is absolutely key,” believes Legrand.
The ex-Barclays head, who is a member of the board of the wallet provider Blockchain, Antony Jenkins argues that the influence of cyber money on the world of finance and public currencies will be thorough.
He also does not believe that the worldwide adoption of only one cryptocurrency is in the distant future. On the contrary, it is in can be foreseen when people will be making an advantage of utilizing only one global cyber currency. However, according to his words, there will also be some disputes over it as well as losses of value in the financial system.
Perhaps, Jenkins bore in mind that if bitcoin or any other crypto became a worldwide currency that would be devastating for the banking system, as an enormous number of people would lose jobs.