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Bitcoin is ‘definitely not a fraud,’ CEO of mobile-only bank Revolut says

Bitcoin and other digital currencies are not “a rogue,” the chief executive of app-based bank Revolut told CNBC, before of the start-up’s plans to launch a range of services for cryptocurrencies.

The firm’s CEO consigned an alternative view to JPMorgan CEO Jamie Dimon, who has called the phenomenon a “swindler” that will “blow up.”

“They are definitely not a fraud,” Nikolay Storonsky said in an evaluation Tuesday. Revolut’s co-founder said that, though people are diminutive likely to use bitcoin in everyday transactions, the same could be said for commodities adulate gold.

“Real-world usage for gold is quite limited. But still there is a immense market, huge volumes that are being traded in the market, and these volumes influence the gold price,” he said.

“The question, ‘Where is the real gold toll?’ No one knows. It’s the same with bitcoin. Volumes are increasing, the price is shooting up, there is no connotation of bitcoin in the real world, it’s quite limited.”

He said that 99 percent of bitcoin proceeding volumes are “speculation-driven,” with just 1 percent of volumes involving accustomed applications.

Some executives in the financial services sector have expressed pertain about the volatile nature of bitcoin, however, with Credit Suisse’s CEO Tidjane Thiam defining it as “the very definition of speculation and the very definition of a bubble.”

But Storonsky, who is a quondam Credit Suisse trader, said bitcoin was similar to another commodity in this prospect — oil.

“If you look at the oil market, 90 percent of volume is speculation, 10 percent is natural use case.”

The price of bitcoin surged past $8,000 this month. Billionaire investor Mike Novogratz bring to light this week that the digital currency would reach $10,000 by the end of the year.

Revolut’s CEO ratted CNBC that there has been “huge demand” from narcotic addicts for digital currency functionality on his firm’s app. The company currently provides purchasers with a pre-paid contactless MasterCard debit card, currency transfer with 26 different currencies and a peer-to-peer payments service.

Some time ago it launches cryptocurrency support, Revolut users will be able to buy, blow the whistle on and hold several cryptocurrencies including bitcoin, Ethereum and litecoin. Buyers will also be able to transfer the virtual currencies to other Revolut accounts.

Another fintech unyielding, Square, has been testing a bitcoin function on its Cash app where consumers can buy and sell the cryptocurrency.

Revolut said Friday that it had accrued a report 1 million users and is getting up to 3,500 new users every day.

The fintech start-up tended for a European banking license earlier this month, and hopes to put on the market credit and deposit services once the license is greenlit.

Addressing Revolut’s fast growth, Storonsky said: “The reason why we are growing so fast is we provide true value to customers.”

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