SocGen SEO: Bitcoin has no future due to its anonymity

Frederic Oudea, CEO of Société Générale belives that in the long term cryptocurrencies are unlikely to survive 
08 November 2017   1548

According to Frederic Oudea, CEO of one of Europe's largest financial conglomerates Société Générale, in the long term, cryptocurrencies are unlikely to survive, as governments will desperately seek to regulate them. The head of the bank shared his opinion in an interview with CNBC.

The benefit so far is it provides anonymity to the people who are making the transactions. I can't see a future of this when I see the attention played by all governments and regulators on anti-money laundering, on anti-tax evasion, on anti-terrorism financing. The anonymity of the transaction is a problem I think which would put pressure on bitcoin.

Frederic Oudea

CEO, Société Générale

Despite the cautious attitude towards crypto-currencies, the banker has a positive attitude towards blockchain-based solutions.

I prefer to use the word distributed ledger technology and not blockchain. I'm more a believer of a distributed ledger technology where you have a defined set of players (that are) well-identified. We choose this mix of crypto technology to secure transactions.

Frederic Oudea

CEO, Société Générale

It should be noted that Société Générale is actively testing blockchain-based solutions. In particular, the financial conglomerate is part of the Commodity Trading Consortium, taking part in testing the platform for the trade in energy resources, which is based on the technology of the distributed ledger.

BIS to Issue Research on Bitcoin Problems

Researcher from the Bank of International Settlements believes BTC should abadon PoW
22 January 2019   81

Researchers from the Bank for International Settlements published a report in which they stated that only by abandoning the Proof-of-Work mechanism of consensus, Bitcoin could get rid of its current and future problems.

According to them, in the future, when the size of the rewards for mining drops to zero, transaction processing fees alone will not be enough to justify the miners' activities. Consequently, the Bitcoin network will become so slow that it will be impossible to use it, the authors argue.

Simple calculations suggest that once block rewards are zero, it could take months before a Bitcoin payment is final, unless new technologies are deployed to speed up payment finality. 

Raphael Auer

Principal Economist, BIS

The BIS admits that second-level solutions such as the Lightning Network can ease the task, but “only fundamental remedy would be to depart from proof-of-work.” According to the report, the transition to alternative consensus mechanisms “require some form of social coordination or institutionalisation”.

The Bank for International Settlements contributes to the cooperation of 60 central banks from various countries of the world, which account for 95% of global GDP.

Earlier this month, the agency disclosed statistics on central bank initiatives in the field of state digital currencies. According to him, about 70% of central banks conduct research related to the issuance of national digital currencies, but plans for their implementation and the perception of the issue vary considerably in different countries