We need to know one of the largest banks in Asia, DBS, considers that the currency of cryptocurrency bitcoin is a scheme of financial fraud.
DBS group technology director David Gledhill said it considered bitcoin to be a ponzi scheme.
"We see bitcoin like a ponzi scheme," Gledhill said as quoted by CNBC, Wednesday (15/11/2017).
The ponzi scheme is an illegal investment mode that gives investors an advantage of their own money or the money paid by the next investor.
Profits are not obtained from individuals or organizations that run investment activities.
Ponzi schemes usually persuade new investors by offering higher returns than other investments in the short term with very high returns.
The continuity of such high returns requires an ever-increasing flow of money from new investors to keep this scheme going.
According to Gledhill at the Singapore Fintech Festival, bitcoin transactions are very expensive and all the costs are hidden within the crypto mechanism.
He also asserted that DBS is not involved in any transaction related to bitcoin.
"We think DBS is not currently in the game to create a competitive advantage for us," Gledhill said.
Currently, he added, DBS focuses more on electronic transactions conducted in official currency approved by the government.
Gledhill also predicted the value of bitcoin will decline sharply.
DBS is Southeast Asia's largest bank and strongly believes in technological advancements.
In the year 2017, DBS launched a cloud-based e-learning management system with artificial intelligence supported for employees.
In recent weeks, the value of bitcoin is very volatile.
At the end of last week bitcoin value slipped to 5,507 US dollars after reaching a record high of 7,879 dollars a week earlier
Good Read! Let's see if DBS is right
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