The latest ramblings from a banking head came at a conference this week in China., Bank of France Governor Francois Villeroy de Galhau reacted to the market volatility after Bitcoin hit the $11,000 milestone:
“We need to be clear: Bitcoin is in no way a currency or even a cryptocurrency. It is a speculative asset. Its value and extreme volatility have no economic basis, and they are nobody’s responsibility. The Bank of France reminds those investing in Bitcoin that they do so entirely at their own risk.”
America gears up for mainstream trading
While the Bank of France remains bullish on their stance of cryptocurrencies, America is gearing up for mainstream trading of Bitcoin this month.
On Friday, the US Commodity Futures Trading Commission granted permission for the Chicago Mercantile Exchange and Chicago Board Options Exchange to forge ahead with plans to launch Bitcoin Futures.
After a week of seesawing Bitcoin prices, the market reacted positively to the news and prices stabilized, hovering around the $11,000 mark on Saturday.
What remains to be seen is whether there will be an about turn in the perception of high profile banking figures towards Bitcoin and cryptocurrencies.
JPMorgan CEO Jamie Dimon hit out at Bitcoin a month ago, all while the bank announced their plans to launch Bitcoin futures on the CME. Trading is expected to get underway mid-December, so we should be hearing from Dimon in the next two weeks.
PwC accepts Bitcoin
PriceWaterouseCoopers’ Hong Kong offices announced that they’d started receiving payments for their accountancy services in Bitcoin this week.
What is the reason for their decision? To embrace new technology, according to their Asia-Pacific Chairperson Raymund Chao.
Bankers the last to change their tune?
It’s becoming increasingly clear that big banks around the world are threatened by the rise of decentralized cryptocurrencies. Heads of the industry are constantly warning against or hitting out at the likes of Bitcoin.
Some are well-informed, cautioning against un-educated trading. Others seem completely oblivious to the underpinning Blockchain technology and uses of virtual currencies.
Their reactions seem like death throes, as they fight against the coming revolution in the way we do transactions and approach the current financial system.
As more financial institutions embrace cryptocurrency, pressure will continue to mount on the banking establishment. The question is when will they start playing a different tune?