DBS Bank Group CEO Piyush Gupta recently talked at the Economic Times Global Business Summit, where he talked about cryptocurrency and its regulation. The Economic Times quoted Gupta as saying:
I don’t think that cryptocurrencies will become money as we know it, but it can 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’s costing you,” he elaborated. “Today cryptos are a potential source of speculated value, it’s unlikely that this is a source of money as we know it.”
Piyush Gupta further said that central banks across the world should consider bringing cryptocurrency into the regulated space.
He stated: Regulating it out of the formal banking system is an unwise thing to do, as you wish to push it out into the unregulated space and then you have no way of creating any guard rails.
“Nobody knows who owns private money, so it is subject to misuse,” he stressed, adding that this issue is what Indian’s central bank, Reserve Bank of India (RBI), is so concerned about. He added, “monetary systems across the world have flagged off AML and KYC issues pertaining to crypto.”
The CBDCs ( Central Bank Digital Currencies) has its own set of challenges, if you go direct, every citizen opens a direct account with the central bank and it disburses the CBDC directly
The downside of this is it will disintermediate the existing banking system, therefore you make the process of credit creation the onus and responsibility of the central bank alone and they don’t want that.
The DBS launched a full-service digital asset exchange in December 2020 and also offering cryptocurrency services to some clients.
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