Cryptocurrencies such as Bitcoin may have been flavour of the season for most part of the last year, eminent banker Uday Kotak doesn’t mind discounting them. In fact he thinks that unless cryptocurrencies earn trust of the people, it will be difficult for the authorities to legally allow them.”I am a believer that the only cryptocurrency that has worked in the world is gold. That is also not issued by any state anywhere and unless we reach a stage where we have an alternative currency that has same trust of people as that with gold, it will be very difficult for the authorities to allow any new cryptocurrencies,” Kotak told PTI in an interview.Kotak was here last week to attend the World Economic Forum (WEF) Annual Meeting, where crypto currencies were one of the major points of discussion with regard to the financial markets.
A firm believer in formal banking systems, eminent banker Uday Kotak feels gold is the only alternative currency that has worked ever without any state support and sees no regulatory backing in immediate future for numerous crypto currencies that have cropped up.The business leaders present at WEF felt that the valuations and varieties of crypto-assets now available have raised fears of an overheated market.
“Worldwide there is an exuberance and underpricing of risk in equity markets,” Kotak said in an interview with Bloomberg Television on the sidelines of the World Economic Forum in Davos some days back. “People are complacent whether it is US or Europe or anywhere else.” The S&P 500 Index closed at a fresh record on Tuesday as the strong start to the earnings season continued. Investors in emerging markets are also holding on to the risk-on stance, with exposure to developing-world assets at the highest level since April 2015, according to the Institute of International Finance. Global finance executives gathered in Davos however said investors could be wrong-footed by central banks raising interest rates, after the International Monetary Fund warned Monday that a recession may be closer than many acknowledge even though growth is picking up.