Zoltan Pozsar, who till not too long ago labored as CEO of the funding financial institution Credit score Suisse, gave his perception into the monetary markets and the problems that weaken the greenback’s dominance all over the world.
In his function at Credit score Suisse, Pozsar’s perception into the ins and outs of the previous monetary system and market dynamics was extremely wanted. His current departure from the financial institution got here shortly after it was purchased by UBS in March in a bid to stop it from collapsing amid existential turmoil for banks worldwide. On stage at Bitcoin 2023, Pozsar addressed how US banks have been affected.
“That is principally an episode the place the large banks are largely insulated from the issues,” Pozsar stated. “It is principally classes discovered about not having the ability to run rate of interest danger, not understanding tips on how to make a mortgage that may stand up to a rising rate of interest storm.”
He described the Federal Reserve’s response to those financial institution failures as solely addressing “half the issue.”
“I believe it is extra like skimming the runway for a few of the huge banks which may have issues down the highway,” he added.
Pozsar was interviewed on stage by BitMEX founder Arthur Hayes, who pressed him on whether or not he owns any bitcoin.
“I do not personal any,” Pozsar replied. “I observe it. I do not like messing round with issues I do not totally perceive.”
Pozsar outlined his pessimism that bitcoin may ever actually function cash, as his historic analysis has proven him that cash should have a direct hyperlink to a authorities to endure. As a essentially decentralized, peer-to-peer community, Bitcoin couldn’t help cash that matches his definition.
“The one factor I might say about bitcoin is that cash, if you’ll, is one thing that’s purely public or a public-private partnership,” Pozsar defined. “After I take a look at Bitcoin, it is a purely personal initiative. It clearly lacks a authorities hyperlink. However once more, issues are evolving, there are a variety of nations which have adopted bitcoin as a authorized tender, so issues are positively altering there.”
In his writing, Pozsar has emphasised the evolving function that Bitcoin performs worldwide as institutionally backed cash such because the US greenback weakens. At Bitcoin 2023, he listed a number of international market developments, together with China’s rising financial energy, which threaten its function as the worldwide reserve forex.
“There are a selection of modifications which can be occurring that I believe we have to control as a result of it is all going to come back on the expense of the greenback’s share of commodity finance, commerce finance, share of reserve property and so forth,” Pozsar stated.
