The CEO of the Swiss bank UBS, Ralph Hamers, in an interview with Bloomberg TV, called cryptocurrencies “an unverified asset category.”
Hamers did not deny that the bank’s clients are interested in cryptocurrencies, and in May UBS even announced plans to introduce tools for investing in cryptocurrencies. However, Hamers later warned that due to high volatility and recent market drawdowns, they may not be a suitable and safe alternative to traditional finance. Therefore, digital currencies are attractive only for speculative investors, the head of the bank said.
“Our clients are looking for different investment alternatives. They hear about cryptocurrencies “on every corner”, they read about them in the media, so they are afraid to miss their chance. At the same time, investors see how much cryptocurrency rates can fluctuate. That is why we advise you to treat digital assets with caution, and do not try to actively offer them to customers, ”said Hamers.
UBS Bank owns $ 1.2 trillion in assets. The bank was previously skeptical of cryptocurrencies, and last year denied the idea that bitcoin could be a means of preserving value and saving from inflation. Hamers believes that the tightened regulation of the cryptocurrency industry and changing investor sentiment could provoke a further decline in the market. This month, UBS has already recommended that investors “stay away” from cryptocurrencies and build their portfolio with less risky assets.
“I do not have a loss of profits syndrome (FOMO) that the bank can lose wealthy clients who want to invest in cryptocurrencies,” added the CEO of UBS.
However, more and more banks are starting to implement products for investing in crypto assets. Swiss digital bank Sygnum introduced Ethereum 2.0 staking to its clients this month, and South Korean bank Woori Bank launched cryptocurrency custody services.