Bitcoin 2016 Alarmed Davos

29.01.2016

In 2016 Bitcoin is capable of shaking the foundations of the entire financial industry. This particular question was discussed by giants of world economy from International Monetary Fund, Morgan Stanley, Deutsche Bank, etc in the frames of a forum which annually takes place in Swiss Davos. James Gorman, CEO of Morgan Stanley, stated that people would not feel changes in their lives tomorrow; last year he called Bitcoin a “surrealistic event”.
   Besides everything else James Gorman contextually noted that the bank industry is anyway under the influence of cryptocurrency innovations and especially they are alarmed with Bitcoin 2016, as well as trading in securities, stocks and bonds; however, regulatory standard problems requiring immediate decision attract his attention in greater degree than Bitcoin and other technological inventions.
According to John Cryan, the director of a department at Deutsche Bank, there is no reason to worry about a revolutionary financial overturn related to Bitcoin. Mr.Cryan also noted that blockchain technology gains attention; he mentioned his own interest to this technology saying that it can be useful in many fields of banking and business of different scale; however, it bears no relation to Bitcoin.
The forum in Davos, which was held as informal discussion, was dedicated to the “Fourth Industrial Revolution”, so participants raised issues concerning modern reconstruction of market and society.
It is to be noted that meeting was civilized and characterized by agreements and consensus of opinions. All participants agreed that it was a high time for bankers to discuss crypto-technologies which entered the mainstream of the financial world. One more evidence is that Goldman Sachs joined the next 50 million-stage of funding the largest Bitcoin startup Circle Internet Financial, and Nasdaq launched a blockchain-based platform for trading securities of private businesses.
Other prevalent issues of the forum were decentralization and uncontrollability of cryptocurrencies. Christine Lagarde, the Managing Director of the International Monetary Fund, emphasized that all currency innovations related to Bitcoin 2016 has already begun their negative influence on monetary policy and therefore threaten the stability of financial system worldwide. Moreover, Mrs. Lagarde noted that at the moment there is no reason for panic as cryptocurrencies’ share is insignificant, about 0.1% of monetary stock of the USA; however, even this part carries weight and sets the alert.
Dan Schulman, the Director General of PayPal, has also participated in forum representing revolutionary technologies; his speech was focused on security of transactions and compromise of users’ data. Mr. Schulman expressed his concern toward potential hacking of financial markets as a result of digitization of stock exchange.
Rather interesting turnover in the discussion happened after the question of the forum’s moderator Gillian Tett from Financial Times, who asked whether Wall Street is able to keep ahead of blockchain technologies. Answering the question, Mr. Gorman, whose company participated in the world’s largest IPO of Chinese online-retailer Alibaba, offered to consider the following: “Look how we actually make money. Is blockchain able to prevent us from launching Alibaba into the market?»
  This kind of controversy on Bitcoin and its 2016 prospects (that is why “Bitcoin 2016”) takes place at the top level.
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