Singapore’s DBS Bank Won’t Extend Crypto Services to Retail Clients – For Now
Singapore’s largest bank DBS will not extend its crypto trading services to retail customers as of yet, changing their earlier intentions to do so.
Mid February this year, DBS Bank announced plans to extend crypto trading services to its retail clients by the end of 2022. The bank aimed to provide retail access to crypto by facilitating instant online deposits and transactions without depending on intermediaries.
In a recent interview, DBS CEO, Piyush Gupta, said the local regulators are “rightfully concerned” about allowing crypto services in the retail sector. Therefore, the bank pulled back on 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 anytime in the immediate future.”
However, Gupta is bullish on the future of cryptocurrencies, projecting that “sooner or later” they will become a vital part of the financial network.
“Left to ourselves, as I have said before, I think over time, digital currencies and crypto assets are going to be pervasive. And therefore, sooner or later, I think the world will have to come to terms with this as an asset class.”
Couple weeks ago, Gupta described cryptocurrencies as an alternative to gold and its role in the current monetary system. However, he noted that right now, the existing crypto market volatility holds digital assets from to becoming “money as we know it:”
“The other big challenge is volatility in value. If you want to use this to pay for something, you don’t know what it’s costing you. Today cryptos are a potential source of speculated value, it’s unlikely that this is a source of money as we know it.”
The chief executive of DBS believes that global regulation is needed for the sector. Central banks should be responsible for designing the regulatory framework, he said.
He also highlighted the benefits for blockchain technology saying: “It can change how trade finance is processed, it can change how payments and settlements clearances work, it can change how exchanges work.”
