A Swiss bank speaks about the benefits of decentralized finance
Julius Baer is interested in DeFi. An asset management company is ready to provide its clients with access to digital currencies.
Julius Baer plans to launch in-depth research into cryptocurrencies, advise clients on digital coin investments and integrate them into their asset management initiatives. The company also intends to start cooperation with cryptocurrency service providers for fiat exchange, while complying with existing regulatory requirements.
According to Julius Baer CEO Philip Rickenbacher, the recent crypto market downturn proved to be a “tipping point” for investors who want access to digital assets.
“It is quite possible that we are now witnessing the explosion of the cryptocurrency bubble. We know what happened when the dot-com bubble burst about 30 years ago. This paved the way for the emergence of a new Internet, which really changed our lives,” said the top manager.
He is confident that crypto assets, and in particular decentralized finance, have the potential to radically change the global financial market over the next 10 years. Therefore, it is now very important to allow investors to invest in cryptocurrencies in the long term.
According to Rickenbacher, all the defects of the outdated banking system can be eliminated with a few lines of code. In any case, new technologies will penetrate conservative finance, says the head of Julius Baer.
Cryptocurrency market analysts believe that decentralized finance can be a fairly effective inflation hedge. In particular, we are talking about stablecoins that can be directly or indirectly invested in DeFi lending and investment protocols.
Earlier, the Bank of Spain released a report stating that decentralized financial systems, as well as BTC and ETH, are the most popular among Europeans. According to experts, centralized cryptocurrency platforms as an intermediary help to earn about 10% per annum in foreign currency. And this is a pretty serious profit, according to the realities of the traditional market, right?