The most prominent Asia’s bank DBS names bitcoin a “Ponzi scheme”. Since its opinion that at present Bitcoin is currently a financial scam.
DBS group chief, David Gledhill speaking at Singapore Fintech event told CNBC:
“We see bitcoin as a bit of a Ponzi scheme. Bitcoin transactions are expensive and all the fees are hidden via crypto-mechanisms. We don’t think DBS being in that game right now is going to create a competitive advantage for us”.
Despite labeling Bitcoin a scam, Gledhill mentions that the digital payment system will eventually scale. Thus, it leads to becoming “very cheap”.
The DBS or the Development Bank of Singapore is the Asia’s largest bank established by the Singaporean government. Thus, it is one of the biggest lenders in the region around 500 billion SGD in assets.
Gledhill says Bitcoin is really not an option to bring in customer, deposits or wealth management. It now the approach of a watch and learn.
Certainly, the opinions of Gledhill are nothing new. Earlier in September, JP Morgan Chase chief executive Jamie Dimon calls bitcoin “a fraud”. Further, he also added threat saying that “stupid” enough to engage a Bitcoin trading. Similarly, Russia’s economic development minister compare Bitcoin price boom to that of MMM.
Consequently, this year, Bitcoin’s dramatic appreciation caught many sensible market participants by surprise. Thus, Bitcoin price has gained its value by 690% last week. Even Bitcoin came across extreme sell-off over the last weekend. However, the market has come up with quick recovery effort now seems Bitcoin is back with its $7000 milestones. Therefore, at the time of commencing, bitcoin is trading at $7259.11.
Image Source: Bitcoin “Ponzi Scheme”