Bank of Singapore Says Crypto Could Replace Gold as Store of Value  

Kasumi Goto

1 289 QCP
Post Image
Bank of Singapore, a private banking arm of OCBC Bank, has said cryptocurrencies have the potential to partially replace gold as a store of value.

- Before that can happen, though, cryptocurrencies must overcome hurdles including high volatility, regulatory acceptance and reputational risks, according to a research note from the bank reported by The National News on Sunday.

- “First, investors need trustworthy institutions to be able to hold digital currencies securely. Second, liquidity needs to improve significantly to reduce volatility to manageable levels,” wrote Mansoor Mohi-uddin, chief economist at Bank of Singapore.

-If the issues can be addressed, bitcoin (BTC, +5.04%) could have a place in investors' portfolios as a potential safe-haven asset and means to diversify assets, he said.

-Cryptocurrencies offer the benefit that they are easy to move and store when compared with precious metals, though they are also prone to theft via hacking, per the note.

-Mohi-uddin doesn't see cryptos replacing fiat currencies, however, as he considers them an inefficient unit of exchange.

-“Governments are very wary of any technology that could potentially displace national currencies. This would reduce the ability of policymakers to print money during economic crises,” he added.

https://www.coindesk.com/bank-of-singapore-says-crypto-could-replace-gold-as-store-of-value
  • Banking
  • Gold
  • Investment
  • Singapore