Bitcoin in addition to cryptocurrencies are unlikely to survive long-term as governments scramble to regulate them, according to the chief executive of French banking giant Societe Generale.
Frederic Oudea said that will, while he was a believer in distributed ledger technology — which allows data to be stored in enormous volumes across a secure network of computers — virtual currencies carry too much risk due to their anonymity.
“The benefit so far will be the idea provides anonymity to the people who are creating the transactions,” Oudea told CNBC on the sidelines of the Web Summit conference in Lisbon, Portugal, on Tuesday.
“I can’t see a future of This particular when I see the attention played by all governments in addition to regulators on anti-money laundering, on anti-tax evasion, on anti-terrorism financing. The anonymity of the transaction will be a problem I think which would likely put pressure on bitcoin.”
Societe Generale has itself experimented that has a blockchain-based trade finance platform. nevertheless Oudea said: “I prefer to use the word distributed ledger technology in addition to not blockchain.”
Blockchain technology was originally created to serve as a digital log of all bitcoin transactions. nevertheless right now companies are looking at different use cases of the technology.
Oudea said he was “not convinced” digital currencies would likely “see any development.”
“I’m more a believer of a distributed ledger technology where you have a defined set of players (that will are) well-identified,” he said. “We choose This particular mix of crypto technology to secure transactions.”