Banks Are 'Afraid' of Bitcoin, Says Wealth

Banks are likely "afraid" of bitcoin and blockchain, a wealth advisor said today.

Speaking with CNBC, Rainer Michael Preiss, executive director for Singapore-based Taurus Wealth Advisors, made his argument in the wake of comments from JPMorgan chief Jamie Dimon, who declared bitcoin "a fraud" earlier this month and predicted that it would "blow up".

Preiss, according to the publication, said:

As for why investors are interested in the cryptocurrency, Preiss suggested that it had to do with fears around the US Federal Reserve and concerns about the integrity of its balance sheet after years of supporting global markets.

"The concerns are about the fractional reserve banking system, and the balance sheet of the Federal Reserve at $4.5 trillion, where the Fed officially refuses an audit," he told CNBC. "On the other hand, on the bitcoin blockchain, you have an audit everyday because it's open-sourced."

Press' supportive comments stand in sharp contrast with Dimon's, who predicted in 2015 that bitcoin would fail. Others, in recent days, have cast a critical eye on the overall cryptocurrency market, with Ray Dalio, founder of the world's largest hedge fund, remarking earlier this week that "bitcoin is a bubble."