Pictet Group, a Swiss multinational private bank and financial services, claimed that cryptocurrency is not yet ready to enter the private banking sector.
(Photo : Photo by FABRICE COFFRINI/AFP via Getty Images)
A sign of Swiss private Bank Pictet is seen at their headquarters on August 25, 2014 in Geneva. The elite of Swiss private banks will begin lifting the veil on their books after a radical shift in business model, amid tougher international regulations and crackdowns on tax dodgers.
As of writing, the blockchain industry is still in a not-so-good situation. This 2022, it experienced numerous valuation crashes.
Because of its volatility, Bitcoin and other popular digital coins are being criticized.
Recently, JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon claimed that BTC is a fraud.
Pictet Group Claims Crypto Still Unacceptable in Private Banking
According to Bloomberg's latest report, the Swiss private bank said digital coins have no place in private banking.
(Photo : Photo by Dan Kitwood/Getty Images)
A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile.
Also Read: US Treasury Sanctions Kraken for Allowing Crypto Trading in Prohibited Countries
Although this is the case, it still recognizes the potential of cryptocurrencies reaching asset levels.
"Crypto will be an asset class that we cannot ignore, but today I don't think there is a place for private bankers and for private bank portfolios," said Pictet Group's CEO, Tee Fong Seng.
He shared this statement during the Bloomberg Asia Wealth Summit on Thursday, Aug. 4, which happened in Singapore.
The private bank official further explained that crypto trends for the past two years show that digital coins can generate a lot of revenue, but they can also suddenly plummet.
Despite crypto remaining a volatile financial asset, some venture capital funds and institutes are becoming more interested in investing in digital coins, as explained by Tokocrypto Chief Marketing Officer Nanda Ivens.
Newbie Crypto Investors Losing Money
NPR recently reported that first-timers in cryptocurrencies lost lots of money due to the previous blockchain market crash.
One of these newbie crypto investors is Michelle Milkowski, a resident in Renton, Washington. Just like other first-timers, she was lured into releasing funds in hopes of earning more revenue from the digital coins.
She said the recent Bitcoin advertisement featuring Matt Damon appealed to her. Of course, the ad helped BTC to set a new valuation record of $69,990.
However, this didn't last as its value still decreased. As of writing, one BTC values almost $23,000, which is quite low compared to the recent value when the Matt Damon ad launched.
Previously, critics explained why pulling crypto funds from collapsed exchange platforms is difficult.
On the other hand, Russia's Central Bank decided to ban Bitcoin mining and cryptocurrency transactions.
For more news updates about cryptocurrency and other business tech topics, keep your tabs open here at TechTimes.
Related Article: Thousands of Solana Users Lose Funds After an '$8 Million Crypto Heist'
This article is owned by TechTimes
Written by: Griffin Davis
