Central banks should regulate cryptos: DBS Bank CEO Piyush Gupta

economictimes.indiatimes.com:

Central banks across the world should look at bringing cryptocurrencies in the regulated space though non-fungible tokens (NFT) or stable coins will not replace fiat currency, says DBS Bank Group CEO Piyush Gupta during an interaction. Gupta, who was speaking at The Economic Times Global Business Summit, said that there is a better use case of wholesale cross-border central bank digital currencies (CBDC). «I don't think that crypto currencies will become money as we know it, but it can be an alternative to gold and its value,» Gupta said. «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.»

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Gupta said that central banks across the world should look at regulating cryptos. «Regulating it out of the formal banking system is an unwise thing to do, as you wish to push it out into the unregulated space and then you have no way of creating any guard rails,» he said. «Nobody knows who owns private money, so it is subject to misuse, that is what the RBI governor is so concerned about, monetary systems across the world have flagged off AML and KYC issues pertaining to crypto.» While speaking about specific use cases of a CBDC, Gupta also said that introduction of such currencies could lead to disintermediation in the banking system. «CBDCs come with it's own set of challenges, if you go direct, every citizen opens a direct account with the central bank and it disburses the CBDC directly,» he said. «The downside of