Taimur Baig, chief economist of DBS Bank, said in a quarterly digital asset assessment report published in the past weeks that the pandemic played a major role in the spread and acceptance of Bitcoin.
One of the key names of the Singapore-based multinational bank DBS included Bitcoin and cryptocurrencies in the report. Taimur Baig, the chief economist of his bank, mentioned the impact of the coronavirus pandemic on the leading coin in a 3-month report on cryptocurrencies in August. Recently, interest in Bitcoin and other cryptocurrencies has been on the rise in markets with large financial institutions such as Singapore, Germany, and Switzerland. According to Coindesk, the economist may have made such statements with the effect of the mentioned interest.
Determining two different demand stages, pre-epidemic and post-epidemic, in his report, Baig compared the two periods. Pointing out that the demand was largely speculative before the pandemic, the economist said that people invested 1% of their investments in Bitcoin just because they were curious or wanted to be a part of it. Suggesting that this interest is taking a step forward with the coronavirus concern, Baig emphasized that people are starting to see Bitcoin as a way out of the dollar and a safe harbor.
Bitcoin Could Be More Digital Gold Than Exchange Rate
Baig thinks it is wrong to view Bitcoin as an exchange rate against the dollar. Saying that crypto currencies cannot be valued in this way, the economist stated that unlike traditional currencies, digital currencies do not depend on the domestic developments of the countries. Considering that cryptocurrencies will not act in direct connection with the US economy for this reason, Baig stated that Bitcoin is much like gold, which means exchange rates against dollars.
Taimur Baig, who previously held senior roles in many institutions, also sees Bitcoin’s new role, which is strengthened by the pandemic, as a very important step that should be considered by central banks to prepare their own digital currencies (CBDC).