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(Bloomberg) -- Societe Generale SA added to concerns about excessive bitcoin speculation, with the bank’s deputy CEO following Credit Suisse Group AG’s top executive in saying that it’s a bubble.
“Bitcoin today is in my view very clearly in a bubble,” Severin Cabannes said in a Bloomberg Television interview on Friday, after Credit Suisse’s Tidjane Thiam had said a day earlier that the speculation around bitcoin is the “very definition of a bubble,” after the currency exceeded $7,000 for the first time.
The digital currency got new impetus this week after CME Group Inc., the world’s largest exchange owner, said it plans to introduce bitcoin futures by the end of the year, citing pent-up demand from clients. That pushes bitcoin closer to the mainstream by making it easier to trade without the hassles of owning bitcoin directly.
Other bankers are also sounding warnings about the currency. JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon has called bitcoin “a fraud” that will eventually blow up. UBS Group AG Chairman Axel Weber has said that bitcoin has no “intrinsic value” because it’s not secured by underlying assets.
While bitcoin remains a no-go with the industry, banks are racing to develop blockchain, the technology underpinning the currency.
“We are not really very keen to invest in the bitcoin, but we are very keen to invest in the blockchain technology,” Cabannes said.
--With assistance from Caroline Connan
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