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Bitcoin [BTC] and other cryptocurrencies discussed by CEO of banking software firm

Priya

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Bitcoin [BTC] and other cryptocurrencies discussed by CEO of banking software firm
Source: Unsplash

David Arnoltt, the CEO of Temenos Group, one of the biggest firms specializing in software for banks, spoke about Bitcoin [BTC] and other cryptocurrencies and blockchain technology, during an interview with CNN Money Switzerland.

The CEO of Temenos said that banks across the world did not evolve much over the past 40 years because of the lack of competition. However, because of Google, Amazon and Apple’s entry into the market, banks have started to spend more money on digital transformation, especially Swiss banks.

Furthermore, David was asked whether traditional banks would collapse if they fail to hop on to the blockchain technology and Fintech bandwagon. He said that this could possibly occur and that it is difficult to predict the future of banks. This is because the structure of banks today have a considerable difference in comparison to the structure of banks 20 years ago.

David further added that the company supports blockchain but the technology does not have a drastic impact on their business. He said that they will be making announcements involving the cryptocurrency and blockchain space in the coming days.

The CEO stated:

“We are able to support a cryptocurrency. We have a lot of activity in my home town of Zurich actually, in terms of supporting alternative use of technology uses. We support distributed ledger technologies as well.”

He was further asked about how the company was planning to use cryptocurrencies and whether they will be choosing Bitcoin [BTC], Ethereum [ETH] or other cryptocurrencies in the market. David said that it is not the company that decides but the banks that make the call. The CEO believes that there is a role for banks in the cryptocurrency market including tokenization. David added that banks can be “very good custodian” for the space.



The CEO also spoke about the regulatory concerns of the market. He said:

“We are slightly on the fringes because at the moment we are waiting for the regulatory environment to be sorted out and until then certain questions are answered like automatic KYC checks and certain questions around the overall market. Temenos stands ready to support our n-markets and our n-markets are ultimately banks.”

He further added:

“If they can find a role supporting cryptocurrencies as a custodian or a value transfer agent, whatever that role might be, clearly it is with the level of R&D spend that we have. We spend more money on research and development than any other banking software company in the world. We will be there first and you will see some announcements in the next few days as well.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin [BTC] will take another 22 years to regain its all-time high, says research analyst

Akash Anand

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'Bitcoin [BTC] will take another 22 years to regain its all-time high', says research analyst
Source: Pixabay

Bitcoin [BTC]’s rise and fall has been a consistent event that has grabbed headlines in the cryptocurrency space. According to the latest financial analysis conducted by UBS research analyst Kevin Dennean, the fans of the cryptocurrency will have to wait for over 22 years to climb back to its earlier heights of $19,000- $20,000.

Dennean made these claims comparing the pattern of Bitcoin and the cryptosphere with the trends of other financial system crashes like the Dow Jones crash of 1929, the NASDAQ slide in 2000 and the Oil tumble of 2008. The UBS analyst pointed to how a lot of the cryptocurrency’s proponents stated that Bitcoin is en route to a bull surge because ‘other assets did that in the past’. He laid the foundation for the delayed rise of Bitcoin by saying:

“We’re struck by how long it took other asset bubbles to recover their peak levels (as long as 22 years for the Dow Jones Industrials) and how pedestrian the annualized returns from trough to the recovery often are.”

Dennean was also of the opinion that not every bubble that bursts recovers its old highs, taking the example of the Nikkei crash, which after 30 years of its fall, has still not managed to reach its earlier peak, currently trading at around half its all-time highs. The Japanese asset price bubble was an inflated economic bubble in the late 80s where the real estate and the stock market prices were greatly volatile. In 1992, the price bubble burst and Japan’s economic machine came to a standstill.



Another figure used by Dennean was the fact that all the asset classes, including Bitcoin, fell by 75 percent with Bitcoin breaching the 80 percent barrier. After the crash, only the Dow Jones and the NASDAQ provided a reprieve to users after rising back to its earlier highs.

At the time of writing, Bitcoin was trading for $5292 with a market cap of $93.423 million. The 24-hour trading volume was clocked at $12.985.





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