One of the biggest investment and financial services company Union Bank of Switzerland (UBS) has issued a statement that the scalability and volatility of the largest cryptocurrency Bitcoin are still way to to high for it to be used on the level fiat money is used.
In a special statement directed to their clients by Joni Teves, the UBS strategist in charger, has said that until the moment comes when a solid regulatory strategy is set in place and many of the important technical difficulties are overcomed Bitcoin can’t take its place as a “legitimate asset class”, continuing:
“Bitcoin is still too unstable and limited to become a viable means of payment or a mainstream asset class. Owing to its lack of price stability, bitcoin falls short of criteria that need to be satisfied to be considered money.”
As the price of Bitcoin has seen an upward trend, many institutional investment companies have turned their attention to this digital asset with high hopes of seeing a more broad adoption in the second half of the year.
The U.S. regulator approval of the Bitcoin exchange traded fund (ETF) has been seen as a stepping stone for the industry although this have not being seen as a hard evidence for adoption by UBS thus resulting in their decision to not offer any crypto related products to their customers as of yet.
Just a few days ago UBS had made a claim in statement saying that in order for Bitcoin to replace the U.S. money supply it needed to be trade around 213000 dollars per Bitcoin.