The cryptocurrency market was having the most negative month since November last year. The previous four weeks or so has seen Bitcoin shedding over 30% of its value. Despite the present crypto market meltdown, Garlinghouse believes digital currencies have a bright future.
“I think one of the things that will surprise us a year from now is that banks will be custody digital assets directly.
And I think right now, we think about that and think there’s no way that’s going to happen – they’re too conservative. And I think what you’re seeing is two things happening. One is, banks are seeing that a lot of money is being made by digital asset exchanges globally, and banks are profit motivated.
The second, and as we’ve talked about and Ross made very clear, is regulatory clarity and regulatory frameworks allow banks and financial institutions to lean into these markets.”
Speaking at the Singapore FinTech Festival 2018, Ripple CEO stated that financial institutions would foray into the crypto space in 2019 due to regulatory clarity. Banks will start to store digital assets like Ripple (XRP) on behalf of their customers.
“I also predict it will be banks in the ASEAN markets, where there is this regulatory clarity, and there is a lot of progressive, forward thinking. They will be the first to actually allow for crypto assets custody in their accounts.”
Garlinghouse said that members of the Association of South Eastern Asian Nations (ASEAN) would be the first financial institutions to offer cryptocurrency storage services. ASEAN is an international organization that comprises ten members. Founded in Bangkok Thailand in 1967, the financial body includes Singapore, Malaysia, the Philippines, Cambodia, Myanmar, Vietnam, Laos, and Brunei. It aims to promote cooperation and collaboration among member states.