CEO Of DBS Bank Says Cryptocurrency Can Be An Alternative To Gold

Cryptocurrencies and gold. (Pixabay)

JAKARTA – Piyush Gupta as CEO of DBS bank recently stated that crypto currency can be an alternative to gold. However, he also believes that cryptocurrencies cannot be “money as we know it.”

The head of Singapore's largest financial institution expressed his thoughts on cryptocurrencies in an interview with The Economic Times. Gupta revealed the reason why cryptocurrencies are not possible to be a medium of exchange, he assessed that their high volatility does not allow cryptocurrencies to be a medium of exchange.

“Another big challenge is value volatility. If you want to use this (crypto) to pay for something, you don't know how much it will cost. Today crypto is a potential source of speculative value, there is no way this could be the source of money as we know it," Gupta said as quoted by CryptoPotato.

In addition, Gupta calls for global regulation of the industry because global central banks should be responsible for designing the regulatory framework. The Singapore government is also rumored to be using a central bank digital currency (CBDC).

He assessed that the launch of such a monetary product was only a matter of time. According to Gupta, the digital money will carry a “much bigger use case.”

Then the head of the DBS bank praised the technology that underlies the crypto, namely blockchain. Gupta believes blockchain can revolutionize today's payment systems.

"It (blockchain) can change how trade finance is processed, it can change the way payments and payment settlements work, it can change how commerce works," Gupta said.