Digital currencies and asset tokenization are a reality, and they could become a dominant force in the future, but that doesn’t mean. Bitcoin can completely replace fiat currency as a medium of exchange, according to DBS CEO Piyush Gupta. Gupta, ET’s Global Indian of the Year, said, “In December, we launched the first bank-sponsored digital exchange, which allows you to tokenize assets and securities.”
“As a result of our actions, we are developing potential capabilities for crypto, digital currency, and tokenization. However, using Bitcoin as a money substitute is still difficult. Money is a unit of account, a medium of exchange, and a store of value. The world is divided on the future of cryptocurrencies, with regulators such as the Reserve Bank of India (RBI) opposing them as a medium of exchange and billionaires such as Elon Musk supporting them.
Although cryptocurrencies have become common, the volatility of Bitcoin has caused concern among government officials.
“Bitcoin isn’t a successful medium of exchange because it’s decentralized.”, while Elon Musk has confirmed that he will consider it for Tesla, it is complicated to conduct transactions because you can only conduct nine transactions per second. In contrast, Visa and Mastercard can conduct hundreds of thousands,” Gupta explained.
DBS’s Gupta said Lakshmi Vilas Bank fits into the bank’s strategy. DBS was the first foreign bank to buy a struggling domestic lender in recent memory. He foresaw the road to growth a few years back when DBS in India was subsidized to compete”We were mentally trained and had done some research” with domestic banks research around a variety of options, which allowed us to make the best decision possible.”