Last Updated: 17 October 2022
A top brass at DBS Bank thinks bitcoin still has tremendous potential.
— Propine (@PropineGlobal) October 17, 2022
Bitcoin fan at bank
Daryl Ho, investment strategist and senior vice-president of Sinpagore’s largest bank, sees the digital internet money having a good time. He believes bitcoin remains an unprecedented opportunity, despite concerns about high volatility in the crypto market.
During a recent media briefing, DBS stated that the ability to process transactions with bitcoin without a central counterparty for settlement makes it an unprecedented opportunity in history.
Ho noted that bitcoin is rather driven by its utility. It enables the transfer of value through decentralisation, eliminating the need for central parties.
“Most methods that you trade assets with require a central clearing party to verify the transaction. So it is still an opportunity that fiat money cannot buy, because fiat monetary systems are still controlled by central banks.”
‘Bitcoin is unique’
The investment strategist illustrates this argument with an example. He cites how there are people who owned assets that were on sanctions lists. They could not liquidate them because everything had to go through a middleman.
In contrast, the bitcoin market is open 24/7, which offered them a path to cash and liquidity at any time.
Ho also noted that bitcoin’s volatility does not affect its uniqueness and advantages
“I think bitcoin is still unique whether the price changes or not. Looking purely on a price basis, you see a lot of volatility and that doesn’t tell you much about what benefits it actually brings.”
Despite the current downward trend in the crypto market, DBS is seeing huge interest in bitcoin on its own platform.
In June, the DBS Digital Exchange (DDEx) recorded a significant spike in trading volume. In June, it was four times higher than in April this year.