DBS Bank CEO Says Crypto Could Become An Alternative To Gold

The DBS Bank CEO says crypto could become an alternative to gold but it won’t turn into money as we know it so let’s read more in today’s latest cryptocurrency news.

Piyush Gupta, the DBS Bank CEO in Singapore believes cryptocurrencies could turn into an alternative to gold and have a bigger role in the current financial system but he doesn’t think that digital assets can become money as we know it. The top executive expressed his thoughts on several popular crypto topis during an interview with the Economic times and similar to many proponents of the asset class, Gupta envisioned that BTC Can become an alternative to gold.

However, he did point out that the current volatility of the market will not enable the digital asset to become “money as we know it.” He said:

“The other big challenge is volatility in value. If you want to use this to pay for something, you don’t know what it’s costing you. Today cryptos are a potential source of speculated value, it’s unlikely that this is a source of money as we know it.”

Gupta called upon global regulation of the industry with the global central banks being responsible for designing the regulatory framework. The CEO touched upon central bank digital currencies as well and envisioned their implementation leading to “disintermediation” in the banking system. He predicted that the launch of such a monetary product is only a matter of time and will bring far greater use cases. Gupta outlined the merits of the crypto’s backbone which is blockcahin technology, saying that it has the power to change the notion of a hub:

“It can change how trade finance is processed, it can change how payments and settlements clearances work, it can change how exchanges work.”

Bobby Zagotta who is the Chief Executive Officer at Bitstamp USA displayed his thoughts on the correlation between the main cryptocurrency and gold. He predicted that the investors will likely treat both assets similarly and will assume the world of crypto will become more of mainstream investment. There’s uncertainty in the markets right now because of COVID and the military conflict in Ukraine and as such, individuals and companies prefer to deal with the less volatile tokens like stablecoins.

Some other prominent figures went even further and forecast that BTC can replace gold’s dominance.