Piyush Gupta, CEO of leading Singaporean bank DBS Bank, revealed that his institution will not extend its cryptocurrency trading services to retail clients in “the immediate future.” The announcement contradicts the company’s initial intentions to provide such opportunities.

Change of plans

In February this year, Singaporean multinational banking and financial services corporation DBS Bank revealed that it will extend cryptocurrency trading opportunities to its retail customers by the end of 2022.

Specifically, the bank aimed to make the process accessible by facilitating instant online deposits and transactions without relying on intermediaries.

However, in a recent interview, CEO Piyush Gupta said that local watchdogs are “rightly concerned” about allowing digital asset services in the retail sector. As such, the bank withdrew its initial plans:

“But I’m not holding my breath. I don’t think the environment will allow us to make it available to retail at any point in the foreseeable future.”

In any case, Gupta remained optimistic about the future of cryptocurrencies, predicting that “sooner or later” they will become a vital part of the financial network:

“Left to ourselves, as I said before, I think over time digital currencies and crypto assets will go mainstream. And so sooner or later, I think the world is going to have to accept this as an asset class.”

Piyush Gupta, Source: CNBC

Gupta Sees Crypto As A Gold Replacement

The top executive showed his positivity towards crypto a few weeks ago, describing the asset class as an alternative to gold and its role in the current monetary system.

On the other hand, Gupta argued that, at the moment, the volatility of the crypto market does not allow digital assets to become “money as we know it”:

“The other big challenge is the volatility in value. If you want to use this to pay for something, you don’t know what it’s costing you. Today, cryptocurrencies are a potential source of speculative value, this is unlikely to be a source of money as we know it.”

In line with many other experts, the executive director of DBS called for global regulation of the sector. In his opinion, central banks should be in charge of designing the regulatory framework.

Furthermore, Gupta outlined the advantages of the backbone of cryptocurrencies – blockchain technology. “It can change the way trade finance is processed, it can change the way payments and settlements work, it can change the way exchanges work,” he said.

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This post Singapore’s Largest Bank Won’t Extend Crypto Services to Retail Clients

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