Barclays PLC (ADR) (NYSE:BCS) CEO, Jes Staley has denied rumors that the London-based bank is planning to open a cryptocurrency trading desk. During the annual general meeting of the bank with shareholders, the CEO said that cryptocurrency is a real challenge for his bank. Although it has an innovative side and takes one to the forefront of technological improvements in finance, cryptocurrencies also give rise to possibilities that the bank would not like to be a part of.
Staley’s reply is completely different from earlier reports that said the UK bank is conducting a preliminary assessment to find out whether the client interest is sufficient. The reports also said that since crypto trading involves critical factors such as risk, novelty of the asset class and compliance requirements, the desk will require approval from Tim Throsby, Barclays International President, and Staley.
President’s Statement Trigger Off Rumors
The rumors started after the banks’ President stated that they are looking to revive the commercial zeal by directing billions of dollars worth of capital in higher-risk trading. News sources speculated that since Bitcoin (BTC) is one of the trading assets undergoing wild price swings, Throsby could be looking for investment in cryptocurrency. Even the spokesman of the bank, Andrew Smith said, “We constantly monitor developments in the digital currency space and continue to have a dialog with our clients on their needs and intentions in this market.”
However, Staley did not completely deny the interest of his bank in cryptocurrency, stating that officially they will continue to help the clients settle their future contracts in Bitcoin that are available on derivative exchanges such as CME Group Inc (NASDAQ:CME) and Cboe Global Markets Inc (NASDAQ:CBOE).
Crypto Virus To Go Into Remission, Says Analysts
Staley’s denial somehow seems to have emanated from the in-house analysis report put forth by the company in April that compared the spread of investment in Bitcoin similar to an infectious disease. According to the analysts at Barclays, the cryptocurrency new investors have reached “immunity threshold” and now there is a possibility of the cryptovirus going into remission.
Barclays is not the only bank deciding against opening a crypto trading desk. Earlier this year the CEO of Goldman Sachs Group Inc (NYSE:GS), Lloyd Blankfein refuted similar speculation about setting up a cryptocurrency trading desk in the New York bank.
