Bitcoin has no future, says UBS chairman Axel Weber, Blockchain does.

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In a recent article at City AM from Chris Papadopoullos,  UBS chairman Axel Weber was quoted telling the crowd at Bank of England’s Open Forum that Bitcoin has no future.

During a discussion at the Bank of England’s Open Forum, he said private currencies will fail to take off “because there is no lender of last resort – there will always be boom and bust”.

During a financial crisis, central banks such as the Bank of England are able to change the supply of money in order to calm crises, which is not possible to do with a private currency. The lender-of-last-resort role is one the Bank adopted over a century ago.

 

Weber’s sentiment was echoed by Bank of England deputy governor Minouche Shafik.

“Liquidity is a public good, central banks are well placed to provide it,” she said.

However, Weber talked up the benefits of blockchain, the technology that underpins bitcoin transactions. It has been lauded as an ultra-efficient way to manage transactions.

In fact, UBS has its very own blockchain lab in London, where a group of boffins are currently exploring the ways in which blockchain technology can be used in financial market transactions.

About Richard Kastelein

Founder, Publisher and Editor in Chief of Blockchain News and co-founder and director at Blockchain Partners in London/Amsterdam/NYC, Richard Kastelein is also an advisor with a number Blockchain startups doing ICOs including DECENT.ch, Inchain, Humaniq, Chronobank, eGaas and others.

He is regarded as one of the top journalists by the Blockchain and fintech communities – as is evident by his entry in the Top 150 Fintech journalists online and in the top 10 of the Blockchain Top 100 List. As a prominent keynote presenter, he has spoken on Blockchain at events in Gdansk, Amsterdam, Minsk, Dubai, Antwerp, Eindhoven etc, where he helped spread the cause for Blockchain technology and crypto-currency and, consequently, has built a notable network inthe scene.

In 2013, the European Commission appointed him as an expert for overseeing financing for emerging startups as a part of the European Commission’s 90 billion euro Horizon 2020 project, created in Brussels to promote innovation as a driving force of job creation and business ventures across Europe. He has also worked as an external expert for Innovate UK since 2012, judging startups for the UK government.

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