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DBS Bank’s senior executive covered numerous important bitcoin themes in a recent interview with The Economic Times. Like many other supporters of the asset class, Gupta regarded bitcoin as a possible alternative for gold and its value.
Cryptocurrency, according to the CEO of DBS, Southeast Asia’s largest bank, “maybe a substitute to gold.” He went on to say that regulating crypto “outside of the official banking system is a bad idea.”
A valid alternative to gold
At the recent Economic Times Global Business Summit, DBS Bank Group CEO Piyush Gupta discussed cryptocurrencies and its regulations terms of assets, DBS is the largest bank in Southeast Asia. According to the Economic Times, Gupta said: Cryptocurrencies will not become money in the classic sense, but they may give a valid alternative to gold and its value.
The CEO of DBS also discussed central bank digital currency (CBDCs).” CBDCs have their own set of problems,” the CEO explained, “but if you go direct, every citizen gets a direct account with the central bank, which immediately disburses the CBDC.”
The disadvantage is that it will disintermediate the present banking sector, leaving the process of credit creation solely in the hands of the central bank, which they do not want.
For quite some time, Gupta’s bank, DBS, has been offering cryptocurrency services to some clients. The bank will launch a full-service digital asset exchange in December 2020. The platform’s crypto business has grown rapidly since then.
Financial “disintermediation”
He did, however, issue a warning that the current volatility in the cryptocurrency market will prevent the digital asset from becoming “money as we know it”:
Gupta also advocated for global regulation of the industry, stating that global central banks should be in charge of developing the regulatory framework.
The Singaporeans also brought up central bank digital currencies, arguing that their acceptance could lead to financial “disintermediation.”
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
