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BNY Mellon Subsidiary Doubts Bitcoin as Payment Solution, Unlike Its Parent: Report

BNY Mellon Subsidiary Doubts Bitcoin as Payment Solution, Unlike Its Parent: Report

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.

Despite its parent company's recent foray into the industry, the subsidiary is calling for caution on investing in assets like bitcoin.

Despite its parent company's recent foray into the industry, the subsidiary is calling for caution on investing in assets like bitcoin.

AccessTimeIconJun 30, 2021, 5:21 AM
Updated Aug 21, 2021, 6:53 PM

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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.

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