* FM HomeCryptoCurrencyNewsUBS Chairman: Bitcoin Currency Will Fail, Has No Lender of Last Resort UBS Chairman: Bitcoin Currency Will Fail, Has No Lender of Last Resort The chairman of UBS, Axel Weber, believes that Bitcoin’s prospects as a currency are bleak, but its blockchain holds promise.His comments were made during a discussion at the Bank of England’s (BoE) Open Forum, according to a City A.M.report.Intuitively, bitcoin’s shortcomings as a currency thus far would stem from issues like the absence of government backing, low interest from the broader public and high volatility.Weber approached it from a different angle, essentially saying that bitcoin cannot by printed by governments in times of need- a morally repugnant notion for many hardline Bitcoiners.“Private currencies will fail to take off because there is no lender of last resort- there will always be boom and bust,” he said, in reference to the ability of central banks, such as the BoE, to print money in order to stabilize economies during a financial crisis.

The BoE adopted the “lender-of-last-resort” role over 100 years ago, and similar policies (e.g.quantitative easing by the US Fed) have been employed to achieve such objectives, though they have been criticized.“Liquidity is a public good, central banks are well placed to provide it,” said Bank of England deputy governor Minouche Shafik, echoing Weber’s sentiment.Weber is the second major banking figure to express such a view on bitcoin during the past week.JPMorgan CEO Jamie Dimon recently commented that bitcoin’s prospects for survival are poor, and the blockchain’s potential significant, echoing previous comments he has made on the matter.While the daily count of transactions continues to increase steadily, bitcoin has yet to become commonplace as a currency much beyond a relatively small group of supporters.In contrast, Bitcoin’s blockchain technology, and analogous distributed ledger systems inspired by it, are enjoying increasing interest from dozens of financial institutions.Weber too had warm words for the blockchain, and since announcing its blockchain ambitions earlier this year, UBS has been one of the most visibly active players in the space.

It announced its testing of a ‘Smart-Bond’, as well as a ‘Utility Settlement Coin’./nsIfh2uXxU— Cellabz (@cellabz) November 12, 2015 xDon't stay behind!Sign up for our newsletter and get all the hottest news in your inbox daily.* First Name Last Name Email address* I would also like to receive business enhancing offers and promotionsComments Report News First NameLast NameEmail message*Name Found a mistake?litecoin pool tutorialFirst Name*Last Name*Email* message*Commentsbitcoin coin ebayEarlier this month, UBS announced that it is in the process of creating a “settlement coin” that can be used for financial transactions.litecoin pool informationIs this yet another form of altcoin and will it rival bitcoin?bitcoin crash 2013 december

The bank plans on using blockchain technology to create this settlement coin but has clarified that it will not function as a store of value, unlike most cryptocurrencies.bitcoin kyle powersInstead, its application could focus more on storing data regarding trade settlement between financial institutions, banks, and clients.most reliable bitcoin exchangeA number of other established firms have been looking into the potential use of blockchain technology in the financial industry.litecoin globalFor one, online retail company Overstock has already started with its “cryptosecurities” and has made acquisitions that can bring the distributed public ledger to Wall Street.bitcoin mining next difficulty

Similarly, the UBS settlement coin or USC (utility settlement coin) aims to reduce transaction times and costs between counterparties.With the current system, trade verification can take some time to complete as this passes through clearinghouses or several middlemen who also charge fees.bitcoin otc priceIn using the blockchain with the settlement coin, these transactions can occur seamlessly, with added transparency and security.Some experts say that this type of application could be the most disruptive technology in the financial industry of this era.It could also pave the way for the creation of smart contracts, which could also reduce transaction times and costs between banks and its clients.Of course the UBS project is still in its infancy but many are already eager to find out what their innovations lab can produce.UBS has mentioned that they would need support from a large part of the industry in order to make the blockchain more secure and immutable, as record-keeping mistakes could prove to be very costly.

UBS wants to build an industry alliance around a "utility settlement coin" that could catapult blockchain – the technology behind bitcoin – into the financial mainstream.The initiative, in the concept stage, is being led by the Swiss bank's new cryptocurrency lab in London.The coin would be used to settle transactions carried out on... Start Your Free Trial or Sign In Filter by Topic Asset Management Investment Banking Hedge Funds Trading Private Equity Regulation Politics Fintech Lists Editor's Picks McKinsey: Bank research teams face threat of big staff cuts Bruno Iksil connects Dimon to ‘London Whale’ losses An audience with Yanis Varoufakis: EU wants to give you a ‘bloody nose’ Lawyers predict wave of cases from Brexit-driven job losses Was Barclays wise to take Qatari money to avoid bailout?Top Stories Pioneer chief departs as Amundi reveals leadership team Brexit UK isn’t suffering – except by comparison to Europe Blockchain banks give R3 a $100m shot in the arm Five decisions fund managers and brokers must make on Mifid II Barclays chairman says UK is ‘not in control’ of Brexit talks