Crypto is "fatally flawed": UBS exec Paul Donovan calls for the end of Bitcoin

30 Nov, 2018
by David Robb
Opinion
Crypto is fatally flawed: UBS exec Paul Donovan calls for the end of Bitcoin

In a recent interview with CNBC's Fast Money, an executive from the UBS bank expressed his scepticism about Bitcoin. According to Paul Donovan, it and other cryptos are "fatally flawed".

Like many other crypto-sceptics, Donovan described the current state of the market as a "bubble". He claimed that cryptos will never be used as currencies, and that "anyone with a high school education in economics" has had a similar attitude from the start.

When asked about fellow bankers who left their institutions to join the crypto space, Donovan suggested that there may have been some fundamental misunderstanding of monetary policy, insisting that printing more money "doesn't cause inflation", and he also pointed to the hype around a new technology as being something that may have led people astray.

The UBS exec acknowledged that there was some value in the distributed ledger system offered by blockchain technology, but didn't see any valid use cases at all in cryptocurrencies. When asked about places without a functioning government, Donovan admitted that they might prove useful, but that ultimately the inability to control supply means that cryptos don't work as a store of value.

Read more: Bitcoin could replace US money supply if it hits $213,000, says UBS

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Read more about: Bitcoin (BTC) CNBC

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