August 19, 2020
A noticeable Singapore bank said Bitcoin and other public cryptocurrencies show a “new frontier” for contactless payments and digital money, beneath their days of being terminated by bankers.
DBS; Bitcoin is an alternative investment for bankers
DBS, one of the leading banks in Singapore with a projected $234 billion under administration, said in a report on Monday that Bitcoin and other state currencies lead innovation across the comprehensive financial ecosystem, with supply chains and cross-border banking seeing a definite advantage.
DBS says that Asia stays at the forefront of digital currency activity. Noting the region’s crypto exchanges handle billions of dollars each day while China controls a reported 70% of Bitcoin’s total hash rate, the bank noted.
According to DBS, Bitcoin’s trading volume rose from an average of $18 million per day in 2013-16 to $507 million in 2017-19, based on examined exchanges, indicating the steady rise in network activity and the asset’s progression from a vague internet currency to a reliable alternative to gold.
For the time being, the ongoing pandemic-related economic crisis and the ensuing large-scale money printing have inspired holding substitute assets like private digital currencies. The bank added:
“Cryptos have moved from the domain of marginal individual investors to being offered in regulated exchanges and traded by sophisticated institutional and retail investors.”
DBS notes that the appeal of cryptos has begun shifting from privacy and anonymity toward convenience and security.
Fiat challenged by CBDC
With the US and Switzerland leading that space, Singapore remains a global hub for Initial Coin Offerings (ICO), the bank explains. Regulators have taken note, bringing in strict investor securities rules and regulators to avoid the use of cryptocurrencies as a tool of terrorist funding.
They also noted that both public and private digital currencies remain brave new boundaries, with new use cases, technological developments, and regular challenges.
Universally, the trend is toward dropping cash necessity, but the drive varies extensively across countries and within societies. The bank specified that regulators are “still coming to terms with the momentous changes at the private sector level,” as they are keen to maintain control over cross-border expenses and reimbursements.
Significantly, the bank said, “private-sector digital currencies,” after gathering with a great deal of uncertainty from the official sector, “have found traction.” Though they are by no means fully set with admiration to standards, regulations, and acceptance, the bank noted.
As China’s digital yuan is undergoing extensive testing in Hong Kong and Shenzhen, South Korea, and Japan have team-leading studies in the regulatory and technical aspects of CBDCs.