UBS Chairman Axel Weber said that he would not advise bitcoin as an investment
Union Bank of Switzerland thinks that bitcoin is a risky investment and is not advising its clients to invest in the digital currency, the bank’s chairman said.
“We do make that distinction, there are institutional clients and if they want to invest in (bitcoin) — they are grown-ups, I mean they know what they are doing, they have the capability of judging this risk — and if they ask us to help them access, to enter these markets, we need to look at that differently than retail clients.”
Weber indicated some banks which are being criticized for selling complicated financial products before the global financial crisis without explaining them in detail.
“Retail clients, who don’t fully understand these products should be protected from going into these products because if there is a retail client affected in the future, the question will be again who was the bank that sold them these products and then banks will be blamed again for what has happened.”
Weber warned properly, with bitcoin, it is a risky investment and he does not call it currency and retail clients do not have the risk-bearing capacity nor the knowledge to invest in that.
Though UBS allows institutional clients to trade bitcoin, Weber described “this is not an investment we would advise.”