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, Cryptocurrencies could replace Gold, Forex-News, Forex-News
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Cryptocurrencies could replace Gold

, Cryptocurrencies could replace Gold, Forex-News, Forex-News

, Cryptocurrencies could replace Gold, Forex-News, Forex-News

According to a research note, reported by The National News, the Bank of Singapore has said that cryptocurrencies have the potential to replace gold as a store of value.

However, the note indicates that such digital currencies are unlikely to be able to replace fiat currencies. Even as its appeal grows.

In fact, before that can happen, cryptocurrencies must overcome key hurdles. That include trust, high volatility, and regulatory acceptance. In addition to reputational risks.

By the way, the Bank of Singapore (BOS), is a private banking arm of OCBC Bank. Formerly known as ING Asia Private Bank.

The Bank of Singapore: “Cryptocurrencies Could Replace Gold as Store of Value”

In this regard, Mansoor Mohi-uddin, Chief Economist of the Bank of Singapore said: “First, investors need reliable institutions to be able to hold digital currencies safely. Second, liquidity must improve significantly. To reduce volatility to manageable levels ».

According to the note, cryptocurrencies offer the benefit that they are easy to move and store compared to gold. Although they are also prone to theft.

Institutional investors and liquidity

In these circumstances, the Bank of Singapore indicated that a greater participation of institutional investors could help increase liquidity. And reduce volatility.

Also, make Bitcoin’s price action driven more by fundamentals than speculation.

The appeal of digital currencies

Basically, the appeal of digital currencies among young people is partly due to convenience. By the way, Bitcoin and other cryptocurrencies are also easy to store in digital wallets.

Meanwhile, precious metals must often be stored in secure physical locations. And they cannot be easily used for everyday transactions.

However, the other side of the coin is that they are easier for scammers to steal. There are also reputational risks, as digital currencies have been widely used by criminals and others looking to take advantage of their anonymity.

Indeed, Mohi-uddin added: «Government agencies must restrict criminal activity. And thus reduce the risks to the reputation of having digital money».

Ultimately, another possible downside is that, although the supply of precious metals is relatively finite, the launch of new cryptocurrencies in the future could devalue existing digital tokens.

In closing, Mansoor Mohi-uddin, does not see cryptocurrencies replacing fiat currencies. Since it considers them an inefficient unit of exchange.

“Governments are very cautious about any technology that could potentially crowd out local currencies. Since this would prevent him from printing money in times of economic crisis.

I say goodbye with this phrase from J.P. Morgan: «Gold is money. Everything else is debt».

, Cryptocurrencies could replace Gold, Forex-News, Forex-News

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, Cryptocurrencies could replace Gold, Forex-News, Forex-News

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