With cryptocurrencies on the radar of so many regulators, many are wondering whether this is a good or bad thing for cryptocurrencies. If the rules are clear, it could put pressure on the use of cryptocurrencies, says Christian Borrell, senior director at SEBA.
In an interview with Cointelegraph, the bank manager mentioned that institutions are more likely to accept cryptocurrencies when there are clear rules. In addition, the presence of “regulated counterparties” in banks creates a safe and secure way for institutions and stakeholders to gain access to the crypto sector.
“I anticipate a significant acceleration in the sharing and use of digital assets by organizations due to a clearer regulatory environment, as these institutional actors will need a regulated peer party to operate securely.”
Borrell also noted that digital assets are in the best interest of organizations when it comes to opening new horizons. “Institutional investors have always been well aware of new investment opportunities, and their interest in the digital asset sector aligns with this approach,” Borrell says.
The leader also believes that as it caters to the needs of many, there will be more digital asset banks in the industry in the future. A digital asset bank is very similar to a traditional bank. According to Borrell, the digital asset bank offers “the full range of traditional banking services.” However, it is adapting to the digital economy as it has a wide range of crypto products.
“I believe digital asset banks will become more prevalent as the digital economy grows, adapting to changing customer needs and prospects in the booming digital asset economy.”
When asked about the benefits digital assets can provide to both institutions and individuals, Borrell described cryptocurrency as an “attractive alternative,” with another alternative being a commitment to “low interest rates and low returns.”
Related: SEBA Bank Launches Regulated Gold Token to Activate Digital Ownership of Physical Gold
Back in January, SEBA CEO Guido Buehler predicted that Bitcoin (BTC) could rise to $75,000. This can happen when institutional funds flow into cryptocurrencies. According to Buller, asset groups are trying to find the right moment to invest in BTC.