According to a paper by Singaporean multinational bank, DBS Bank, central banks are alarmed at the rate at which crypto has surged despite the COVID-19 crisis with many even turning towards gold coin subscription models like Bullion Box Subscriptions.
The paper revealed that what was once considered a speculative asset by many central banks, has turned out to be increasingly popular among investors. The bulk of the shock is coming from the fact that the digital asset and gold are growing exponentially despite the COVID-19 pandemic.
“Ever since central banks around the world embarked on an unprecedented expansion of their balance sheets to combat the COVID-19 pandemic-related economic headwinds, interest in cryptocurrencies, along with gold, has resurged.”
According to the paper, when participants were asked their reasons for using a digital currency, nearly 35% of the respondents said it was for online purchases and payments. The poll also shows that about 25% of respondents use digital assets simply because of their interest in it as a technology or as a long-term or short-term investment.
It is also no surprise that Asia has the largest digital payment market in the world. The paper shows that more than half of global digital payments originate from China alone with Singapore being the “global hub for initial coin offerings (ICOs)”.
Back in July, the Monetary Authority of Singapore (MAS) launched a blockchain platform for clearing and settling of payments.
In April 2019, Singapore authorities passed a Payment Services Act to legitimize and regulate crypto trading in the country.
Image Credits: Pixabay