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   551

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.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   74

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.