- The head of Pictet Group Asia is not sure that commercial banks will add digital assets shortly.
- The reason for this lies in many hacker attacks, risks and volatility.
The head of the Asian division of the Pictet Group, Ti Fong Seng, is confident that the private banking industry is not ready to integrate digital assets. The expert shared his opinion on this matter with Bloomberg magazine at the summit in Singapore.
“Cryptocurrency is an asset class that cannot be ignored. But so far, it seems to me, there is no place for it in private portfolios and banks,” Seng emphasized.
The main reason for this lies in the high volatility of the digital asset market. June of this year was the worst month in the history of cryptocurrencies.
And although investments in crypto funds increased in July, the situation remains far from ideal. Also, risky business practices should be added here. For example, we will give Three Arrows Capital and numerous hacker attacks.
“Look at the market volatility over the past two years. By investing in cryptocurrencies, you can make a lot of money, but also lose it completely. The question is at what stage customers will join the market,” Seng explained.
This is not suitable for the retail sector. This can be seen in the example of one of the investors:
“My wife has invested in cryptocurrencies, I have not. Why? Because the “bulls” say that big money is spinning there. My answer is that if our savings will ever be in a computer, it will only be in the form of public funds.”
Private banks gravitate toward conservative investments, as do their clients. And while the cryptocurrency is highly volatile, it is unlikely to be in great demand in this area, Seng notes.