Cryptocurrencies have two types of people talking about them, one kind is the ones that are staunch supporters of digital currencies and on the other side are those who are skeptical about it and Walt Bettinger, the chief executive of Charles Schwab Corporation, a bank and stock brokerage firm based in San Francisco, California falls on the other side. The chief executive of the Charles Schwab Corporation has made some not so friendly statements about cryptocurrencies.
In a world where digital currencies are quickly getting too much importance with big multinational companies like Starbucks, Amazon, and Facebook eagerly stepping into the Crypto market, the chief executive of Charles Schwab Corporation, is not yet ready to step in the Crypto industry. There could be some trouble for Charles Schwab Corporation as its arch rivals like Fidelity, TD Ameritrade, and Pershing are getting involved in digital currencies and Charles Schwab Corporation is still not willing to adopt them.
The Managing Director for corporate communications of Charles Schwab Corporation, Rob Farmer, has said
“Direct trading of cryptocurrencies just isn’t on the Schwab radar at this time.”
“Investors should view these currencies as a purely speculative instrument.”
The Financial technology analyst for Aite Group, Gabriel Wang said:
cryptos only represent, “about one percent of US equities’ market size. The overall market size of cryptocurrencies, at this point, is still not big enough for firms like Schwab … to justify the risks they will be taking … [with compliance and security],”
The reason behind the reluctance of Charles Schwab Corporation to not step in the Crypto market could be the small average market capital of the digital currencies. The average market capitalization of the Crypto market is only 300 billion dollars which is equivalent to only 10 percent of the assets of Charles Schwab Corporation dollar 3.2 trillion.
Nonetheless, the reluctance of these biggies to step in the crypto world is kind of discouragement for the digital currencies market.