BNY Mellon Subsidiary Doubts Bitcoin as Payment Solution, Unlike Its Parent: Report
Despite its parent company's recent foray into the industry, the subsidiary is calling for caution on investing in assets like bitcoin.
Insight Investment, a global asset manager with $1 trillion in assets under its belt, said it fails to see the long-term merits of bitcoin as a method of payment, Bloomberg reported Wednesday.
- The manager's head of currency solutions, Francesca Fornasari, said her firm was "skeptical" of the ability for bitcoin to take over a "means of payment."
- Insight is a subsidiary of the world's largest custodian bank, BNY Mellon, which safeguards over $41 trillion in assets. BNY announced its move into crypto in February.
- Despite its parent company's recent foray into the industry, the subsidiary is calling for caution on investing in assets like bitcoin.
- “There’s a whole number of different factors ... that are going to affect the value of your investment, that have nothing to do with inflation or inflation hedges,” said Fornasari.
- The currency solution head also said bitcoin was difficult to evaluate due to its volatility, which made it difficult to determine how the crypto would react in an inflationary environment, Bloomberg reported.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.