A senior executive of investment bank Morgan Stanley wrote a report on how global crypto adoption and other factors like central bank digital currencies are shaping financial services.
Andrew Peel, who heads the Digital Asset Division at Morgan Stanley, recently shared his opinions on global financial services. The main subject of Morgan Stanley’s report was how economies attempted to diversify from the US dollar. For decades, the US dollar has been the world’s main reserve currency. Peel stated global crypto adoption, Bitcoin, and central bank digital currencies were also responsible for the shift.
Regarding Bitcoin, he said, “Its appeal lies in its capped supply, algorithmic governance, and a decentralized ledger, or blockchain, independent of central banks’ influence. Despite regulatory challenges, Bitcoin’s adoption has been remarkable.” He also cited the examples of countries like El Salvador and corporations like Tesla, which boosted Bitcoin adoption.
Meanwhile, the report also dwelled on the growing popularity of dollar-pegged stablecoins. Peel claimed these stablecoins could gradually reinforce the US dollar as a dominant global currency. At the same time, the report mentioned instances of Europe, China, and global organizations like the BRICS and ASEAN laying focus on local currencies.
The recently approved spot Bitcoin ETFs were also mentioned in the report. Peel claimed the spot Bitcoin ETFs could play a key role in using digital assets going forward. Meanwhile, he said central bank digital currencies (CBDCs) would form a collective standard for cross-border payments. It could lead to lower reliance on the current SWIFT system for international payments. The Morgan Stanley official cited multiple central banks worldwide experimenting with CBDCs.
Earlier, JP Morgan, another investment bank, had spearheaded efforts for crypto adoption. Banks have increasingly started offering crypto services to their clients as well.
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