Tags: socgen | bini smaghi | bitcoin | scam

SocGen's Bini Smaghi Says Bitcoin Is a 'Scam' and He Wants Action

(DreamsTime)

Friday, 01 December 2017 10:08 AM

Societe Generale SA Chairman Lorenzo Bini Smaghi urged regulators to beef up international efforts to tame threats posed by bitcoin, the cryptocurrency that’s soared toward $11,000 this week.

“When you have a scam like bitcoin, someone is going to get hurt,” Bini Smaghi said in an interview with Bloomberg TV from Rome.

International cooperation is needed to tackle the risks behind bitcoin transactions, but “we are at a time when that’s not working at best.”

Bitcoin rose Friday after CME Group Inc. and Cboe Global Markets Inc. said they will offer futures contracts as soon as this month, capping a record-breaking week that made the digital currency the focus of investors from Wall Street to Main Street.

“This is going to bring large sums of money in this area,” said Naeem Aslam, a chief market analyst at TF Global Markets in London. “It sends the message that the product does have some regulation around it and it is trading on the same exchange where other reputable derivatives are.”

The world’s largest digital currency has surged about 30 percent this week, reaching a record high of $11,434 on Nov. 29. The gains came with volatile intraday price swings of as much as 20 percent as online exchanges struggled to handle the surging interest and as warnings of an asset bubble intensified. The currency has risen more than 11-fold this year.

“It will be interesting. I think it’s generally positive,” billionaire venture capitalist Mark Cuban said in an email. “What they charge is critical. Transaction costs are relatively high for bitcoin. If this pushes transaction costs lower it will be a benefit to the bitcoin market.”

Price swings are increasing, with the currency slumping 21 percent on Wednesday, triggered in part by intermittent outages at exchanges, just hours after bitcoin had soared to a record. Several observers and bankers including Credit Suisse Group AG Chief Executive Officer Tidjane Thiam have warned of a bubble.

“When the authorities see that behind this bitcoin scam there are some funds that are maybe going to finance terrorism, then maybe they will wake up,” Bini Smaghi said.

© Copyright 2018 Bloomberg News. All rights reserved.

   
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Societe Generale SA Chairman Lorenzo Bini Smaghi urged regulators to beef up international efforts to tame threats posed by bitcoin, the cryptocurrency that’s soared toward $11,000 this week.
socgen, bini smaghi, bitcoin, scam
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2017-08-01
Friday, 01 December 2017 10:08 AM
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