Since cryptocurrency has become the new target of numerous regulators, many have been wondering whether regulation is good or bad for digital currencies. But, SEBA Bank’s senior executive officer, Christian Borel, stated that if there are clear laws in place where crypto is concerned, it could actually help in driving adoption. The banking executive said in an interview that institutions would be more open to adopting these digital currencies when clear regulations are in place. He added that if the banking industry has ‘regulated counterparties’, then it would provide stakeholders and institutions a trusted and secure way to get access to the crypto space.
Borel said that engagement and adoption of crypto would accelerate significantly by institutions in the presence of a clear regulatory environment because a regulated counterparty is needed by these institutional players in order to operate securely. He went on to say that digital assets were in accordance with the interest of institutions as far as finding new prospects is concerned. He said that institutional investors have always taken an interest in new investment opportunities and this approach is also applicable in the case of digital assets. Moreover, the executive went on to say that there would likely be more digital asset banks in the industry in the future because it is catering to the needs of many.
A digital asset bank shares a lot of similarities with a traditional bank. Borel asserted that a complete suite of traditional banking services is provided by a digital asset bank. However, he added that since they offer a variety of crypto-structured products because they are tailored for the digital economy. Borel was also questioned about the benefits that digital assets can offer to individuals and institutions alike. He referred to cryptocurrencies as an ‘appealing alternative’ because the other option people had was to stick with low returns on investment and low interest rates.
In the start of the year, the chief executive of SEBA bank, Guido Buehler had also made a prediction about Bitcoin (BTC), the pioneer cryptocurrency. He said that there was a possibility that Bitcoin’s price could go as high as $75,000. He elaborated that this would happen because more institutional money was expected to flow into the cryptocurrency. Buehler had asserted that there were a lot of asset pools that were waiting for the right opportunity to invest in BTC.
The cryptocurrency had reached an all-time high of $69,000 last year and even though there had been predictions of it reaching a new high in the start of the year, it hasn’t materialized as yet. Meanwhile, there has been a lot of talk regarding regulation of the crypto industry and a number of countries around the world are now taking it seriously because of the popularity of the crypto space. This statement from the SEBA Bank executive is also a clear indication that talks about crypto regulation are serious, but many believe that this would have major repercussions for the industry in the long run.