European banks are very interested in the potential of digital currencies, but do not believe that bitcoin is likely to become a generally accepted form of money, according to the head of Swiss bank UBS.
Bitcoin has become very popular in some countries – in Switzerland, bitcoin machines allowing people to convert cash to the digital currency are common – but in others has run into problems, with China telling digital currency exchanges to shut down and banning fundraising using virtual currency because of the risks the government perceives to financial stability.
Bitcoin’s use to banks is limited by its volatility and the lack of control a central bank would have over its supply, according to UBS.
