Bitcoin/USD provokes scepticism at Davos World Economic Forum

on Jan 23, 2014
Updated: Oct 21, 2019

**, Thursday 23 January:**

Yesterday the annual meeting of the World Economic Forum (WEF) commenced in Davos. It turns the small Swiss town into an arena in which some 2,500 politicians, business leaders and academics discuss the most pressing issues facing the world. Although bitcoin is not on the agenda of the four-day summit, it was inevitable that the e-currency would be discussed by influential entrepreneurs and politicians. After all, the theme of this year’s four-day summit is ‘reshaping the world’ and bitcoin has undoubtedly reshaped the way some people think about money.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Commenting on bitcoin, JP Morgan CEO Jamie Dimon said it is “a terrible store of value”, adding that the digital currency “could be replicated over and over”, referring to dogecoin and other bitcoin clones.
Dimon is arguably one of the most powerful bankers in the world and he sees a major regulatory hurdle in the implementation of bitcoin into the financial system.

As Dimon puts it: “Governments put a huge amount of pressure on banks: know who your client is, did you do real reviews of that. Obviously it’s almost impossible to do with something like that.”
Bitcoin and its lookalikes “will eventually be made as a payment system to follow the same standards as the other payment systems and that will be probably be the end of them”, predicted Dimon.

In a separate interview at the WEF in Davos, US Treasury secretary Jack Lew called bitcoin a “phenomenon”, but he emphasized that lawmakers need to make sure the digital currency doesn’t become an “avenue to funding illegal activities or to funding activities that have malign purposes like terrorist activities”. Lew stressed that an inherent feature of the crypto-currency is the potential for hidden transactions because of its anonymous nature. The Treasury Secretary added that he spoke to JP Morgan’s Dimon about bitcoin, and the two share a certain “incredulity” about it.

Maurice Lévy, a leading French businessman currently the CEO of Publicis, underlined that just as everyone is discussing bitcoin now, “three years ago in Davos we were all talking about Second Life”. Lévy then asked rhetorically “Where is that today”?
Second Life is an online virtual world developed by Linden Lab that celebrated its 10th anniversary in July 2013, but its fortunes since 2007 have declined as long-term consistent usage has been in a downward spiral.
Generally, the consensus in Davos seems to be that people should avoid investing in bitcoin in 2014, even though risk assets like stocks are expected to rise this year.


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Bitcoin Crypto