Singaporean financial services firm DBS Bank believes that Bitcoin remains an unprecedented opportunity despite concerns about the high volatility in the crypto market. During a recent media briefing, DBS stated that Bitcoin’s ability to process continuous transactions without needing a central counterparty for clearing makes it an unprecedented opportunity in history. DBS Exec: Bitcoin Is Driven by Its Utility The bank’s investment strategist and senior vice president (SVP), Daryl Ho, noted Bitcoin is rather driven by its utility, which enables the transfer of value through decentralization, thus eliminating the need for central parties. “Most of the methods by which you trade assets require a central clearing party to verify the trade. So, it is still an opportunity
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Singaporean financial services firm DBS Bank believes that Bitcoin remains an unprecedented opportunity despite concerns about the high volatility in the crypto market.
During a recent media briefing, DBS stated that Bitcoin’s ability to process continuous transactions without needing a central counterparty for clearing makes it an unprecedented opportunity in history.
DBS Exec: Bitcoin Is Driven by Its Utility
The bank’s investment strategist and senior vice president (SVP), Daryl Ho, noted Bitcoin is rather driven by its utility, which enables the transfer of value through decentralization, thus eliminating the need for central parties.
“Most of the methods by which you trade assets require a central clearing party to verify the trade. So, it is still an opportunity that fiat money cannot buy because fiat monetary systems are still governed by central banks,” he said.
The investment strategist further explained with an illustration of people who had certain rationed assets in their possession in February but could not liquidate them at will because exchanges were closed at some point. In contrast, the bitcoin market is open 24/7 and would enable them to raise cash and liquidity at any time.
Ho also noted that Bitcoin’s volatility does not affect its uniqueness and benefits
“I think bitcoin is still unique whether the price changes or not. If we just look purely on a price basis, you will see a lot of volatility and that doesn’t inform you a lot about what benefits it actually brings,” he added.
DBS Records High BTC Trading Volume Despite Downtrends
Despite the current downtrends in the crypto market, DBS has experienced growth in its crypto-related activities.
In June, the bank’s digital asset arm, DBS Digital Exchange (DDEx), recorded a significant spike in its bitcoin trading volume despite the market crash and Terra-Luna collapse in April and May, respectively.
The exchange revealed that its institutional clients were not concerned about the crash; instead, they were busy buying bitcoin at cheaper rates. According to DDEx, the BTC trading volume recorded in June was four times higher than April’s.