Markus Mueller, global head of investments at Deutsche Bank, said his company could not recommend investing in bitcoin and cryptocurrencies, as it was likely to result in significant losses.
He told Bloomberg Markets: “We do not recommend it. It’s only for investors who invest speculatively. There is a realistic risk of total loss.”
Mr Mueller is among scores of banking giants who have lined up to shoot down the idea that cryptocurrencies could be viable long-term investments.
Bank of Spain governor Luis Maria Linde said cryptocurrencies carry huge risks, while Austria’s Financial Planners Association compared bitcoin with a “casino visit”.
Bank of Canada governor Stephen Poloz has also claimed bitcoin lacks any intrinsic value and cannot be considered an asset.
vCard.red is a free platform for creating a mobile-friendly digital business cards. You can easily create a vCard and generate a QR code for it, allowing others to scan and save your contact details instantly.
The platform allows you to display contact information, social media links, services, and products all in one shareable link. Optional features include appointment scheduling, WhatsApp-based storefronts, media galleries, and custom design options.
Mr Mueller said cryptocurrencies could be established as assets in the future, but more regulation and security would be necessary in the meantime.
He said: “Important issues such as liability and documentation are unclear. We are still at the very beginning.”
The US has recently allowed the listing of market “futures” linked to cryptocurrencies, allowing them to be traded more formally by financial services firms.
However this is unlikely to be mirrored in other countries, particularly not in emerging markets such as Asia, where crypto crackdowns have been hotly debated.
Mr Mueller believes that cryptocurrencies can find success if they work together with regulators. Many followers of cryptocurrencies are against regulation, however to him this would appear a sensible protection against abuse and crime.
He said: “When security and trust are created, cryptocurrencies can be assessed like established asset classes. It is possible that the governance required will exist in five to ten years from now.”
At this point, much of the volatility and danger associated with cryptocurrencies will have been removed from the market, making it more sensible to invest, he said.
It will then be possible to use cryptocurrency technologies to completely revolutionise some industries, as: “Cryptocurrencies make transactions even easier and more cost-effective.”