The CEO of Southeast Asia’s largest bank, DBS, says cryptocurrency “could be an alternative to gold”. He added that regulating crypto “out of the formal banking system is an unwise thing to do.”
DBS’ CEO on cryptocurrency and regulation
DBS Bank Group CEO Piyush Gupta spoke about cryptocurrency and its regulation at the recent Economic Times Global Business Summit. DBS is Southeast Asia’s largest bank in terms of assets. The Economic Times quoted Gupta as saying:
I don’t think cryptocurrencies will become money as we know it, but it could be an alternative to gold and its value.
“The other big challenge [of cryptocurrencies] is volatility in value. If you want to use this to pay for something, you don’t know what it will cost you,” he explained. “Today cryptos are a potential source of speculated value, unlikely to be a source of money as we know it.”
The executive said central banks around the world should consider bringing cryptocurrency into the regulated space. He claimed:
Regulating it out of the formal banking system is an unwise thing to do because you want to push it into the unregulated space and then you have no way of creating guardrails.
“No one knows who owns private money, so it is subject to abuse,” he stressed, adding that the governor of India’s central bank, the Reserve Bank of India (RBI), is concerned about the matter. He added, “Monetary systems around the world have highlighted AML and KYC issues related to crypto.”
The CEO of DBS also spoke about central bank digital currencies (CBDCs). Noting that “CBDCs have their own set of challenges, if you go direct, every citizen opens a direct account with the central bank and it pays out the CBDC directly,” the CEO described:
The downside of this is that it will dismantle the existing banking system, and therefore you make the credit creation process the burden and responsibility of the central bank alone and they don’t want that.
Gupta’s Bank, DBS, has been offering cryptocurrency services to some clients for quite some time now. The bank launched a full-service digital asset exchange in December 2020. Since then, the platform has seen rapid growth in its crypto business. The bank said in February that it plans to launch crypto trading for retail investors this year.
What do you think of the comments from the DBS CEO? Let us know in the comments below.
Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.
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