David Gledhill, group chief information officer at DBS, one of Asia’s largest banks, has put his opinion forward of what Bitcoin is. Gledhill has reiterated the point that many hold, calling Bitcoin a Ponzi scheme.
However, Gledhill’s criticism is mostly aimed at the high transaction costs that Bitcoin currently has, and he goes as far as to say that should that issue be sorted – essentially a true scaling consensus be met which cuts the transaction fees, there could be more interest in it for the banks.
As Bitcoin stands presently, there is very little to entice major banks over to it, although some have taken the plunge. However, many in the crypto space believe that Bitcoin is working to solve its scaling issues and lower transaction costs and that is what the banks could be waiting for.
“Incredibly expensive for us”
After outing Bitcoin as a Ponzi scheme in his and DBS’s opinion, Gledhill addressed the real elephant in the room for many users, as well as banks who would consider integrating and adopting the digital currency.
“Bitcoin transactions are incredibly expensive and all the fees are hidden through the crypto-mechanisms,” he said. “We don’t think DBS being in that game right now is going to create a competitive advantage for us.” […]