‘Risk of TOTAL LOSS’ Deutsche Bank warns investors AGAINST cryptocurrency
DEUTSCHE BANK has warned customers against investing in cryptocurrencies as one of its global heads has said: “We do not recommend it.”
By DARIUS MCQUAID
Express.co.uk
Tue, Jan 30, 2018
Markus Müller, global head of the chief investment office at the firm, said he does not support the new trend of cryptocurrencies.
The bank itself has criticised the high volatility and potential data theft cryptocurrencies bring with it.
Mr Müller said: “It is only for investors who invest speculatively. There is a realistic risk of a total loss.”
He went on to explain that he believes the recent price increases were due to a lot of imagination, driven by the current situation on the market.
Recently, other financial professionals have condemned cryptocurrencies as last Monday the Spanish central bank governor Luis Maria Linde spoke about the huge risks cryptocurrencies bring with them.
The Austrian Financial Planners Association also compared bitcoin investment with a “casino visit”.
And Mr Müller told Bloomberg: “Important issues such as liability and documentation are unclear. We are still at the very beginning.”
In order for cryptos to become legitimate Mr Müller believes there needs to be more regulation surrounding cryptocurrencies, a higher level of security and transparency.
As of late, bitcoin’s price has been highly erratic in part due to the crackdown towards the digital currencies by countries in Asia.
Such countries like South Korea and China, previously two big supporters of cryptocurrencies, are cracking down.
South Korea is currently debating a potential ban on bitcoin trading due to concerns over money laundering and tax evasion.
The South Korean justice ministry said: “The ministry has been preparing a special law to shut down all cryptocurrency exchanges, but we will push for it after careful consideration with related government agencies.”
The potential cryptocurrency trading ban saw bitcoin fall 12 percent on January 12 when the crackdown was announced.
China is currently trying to cut down on the amount of bitcoin miners in the superpower as the cryptocurrency process is using up too much of the nation’s electricity.
Japan, one of the early adopters of bitcoin, has not issued a ban as of yet and so has started to become the world’s hotspot for cryptocurrencies.
Still, a senior representative from the Financial Services Agency the Japanese government agency, said in June Japan’s financial regulator is in no rush to adopt cryptocurrencies linked Future contracts.
A move taken by the Chicago Board Options Exchange (CBOE) and Chicago Mercantile Exchange (CME) last year in the US.
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