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.

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Founder of Blockchain News and The Hackitarians Foundation, Richard Kastelein is an award winning publisher and editor, hackathon organiser and entrepreneur. He has written over 700 articles at Blockchain News, has a massive network in the Blockchain arena and is available as a speaker and consultant. (richard@the-blockchain.com) Kastelein has spoken (keynotes & panels) on technology at events in Amsterdam, Barcelona, Belfast, Berlin, Brussels, Brighton, Copenhagen, Cannes, Cologne, Curacao, Frankfurt, Gdansk, Hollywood, Hilversum, Geneva, Groningen, London, Las Vegas, Leipzig, Madrid, Melbourne, NYC, Oxford, Rio de Janeiro, Sheffield, San Francisco, San Jose, Sydney, Tallinn, Vienna, and Zurich. A Creative Technologist & Canadian (Dutch/Irish/English/Métis) his career began in the Native Press (Canadian Arctic) and he later spent a decade in the Caribbean media. Currently, he writes occasionally for Wired Insights, Guardian & Virgin and his articles have been translated into Dutch, Greek, Polish, German & French.