Key Takeaways:
- Blockchain Technology, Decentralized Finance, Crypto Can Exist Separately, But Are All Promising
- Regulation, Trust Is Required For Crypto To Be A Unit Of Exchange
- Bitcoin Could Eventually Replace Gold as a Store Of Value, But Warns Of Volatility
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In a recent interview with The Straits Times, DBS CEO Piyush Gupta sat down to talk about crypto, blockchain technology, and the changes he has seen in banking.
During the 9-minute question and answer session, he also shares his views on the state of CBDCs, Bitcoin’s thesis as a store of value, and how he owns a few cryptocurrencies.
So, let’s take a deep dive into his insights on crypto, and how it could very well change the world.
Also Read: Shanghai Government Steps Into The Metaverse With A $52B Goal By 2025
The Digital Wave
The average adult now spends more time on smartphones than on their Television.
As media formats change, their thoughts, feelings, and expectations evolve as well. Alongside the world’s increasing digitization, traditional companies have been shifting their approach.
“We really are a technology company, offering banking services”
However, more education is required.
Piyush states that people often “conflate” the terms blockchain technology, Decentralized Finance (DeFi), and Cryptocurrencies.
While they all belong in the Web3 ecosystem, these innovations can function independently as well.
He believes that blockchain’s underlying technology could go on to revolutionize any “central record-keeping entity”, including stock exchanges.
He also states that DeFi could change the way people fundamentally interact with one another, using smart contracts instead of centralized entities.
Crypto Regulation Is Essential
The DBS CEO notes that Cryptocurrencies can be broken down into two main categories
- Publicly Issued (Central Bank Digital Currencies/ CBDCs)
- Privately Issued (Most Cryptocurrencies, including BTC & ETH)
He breaks down that publicly issued cryptos tend to have more reliability, and trust than private ones, and therefore are more likely to become mediums of exchange.
“Could a private currency replace gold? It’s not impossible, frankly”
On the other hand, privately issued cryptos like Bitcoin may be great stores of value. However, the intrinsic volatility within the market still handicaps them as units of account and exchange.
DBS Takes Steps Into Crypto, Metaverse
Earlier this year, DBS’s member-only Crypto Exchange, DDEX, hit the billion dollar market in volume traded.
Since then, they have expressed interest in bringing banking to the metaverse, digital worlds where people can interact. Concurrently, they are eyeing NFTs, and possibly other forms of digitalized assets with a sizeable market.
In a separate interview, Piyush also noted that DBS has “more engineers than bankers”, a very promising statistic for all in Web3.
Also Read: Centralization Sucks, But Is Decentralization Really The Answer?
[Editor’s Note: This article does not represent financial advice. Please do your research before investing.]
Featured Image Credit: Coindesk
