Many cryptocurrency enthusiasts believe that a time will come when the cryptocurrency market will outperform traditional financial instruments like stocks, shares, and bonds. However, not so much has happened in this regard and the 90% crypto market downturn in 2018 did not help matters.
Well, finally there is a reason to believe that the crypto market will one day, compete with, if not overtake traditional financial instruments as a preferred asset class for the majority of investors.
The Bangkok Post reported on January 17 that the Stock Exchange of Thailand (SET) is going to apply for a digital asset license which will make them eligible to operate a cryptocurrency exchange later this year.
If that eventually happens, then the SET will be the first national stock exchange to launch a crypto exchange subsidiary. But the big question is: Why does the Stock Exchange of Thailand want to operate a cryptocurrency exchange?
Here are some reasons revealed in the report by Mrs. Pattera Dilokrungthirapop, chairwoman of the Association of Securities Companies in Thailand and vice-chairwoman of the SET’s board of governors.
- Securities firms operating as members with SET want to become cryptocurrency brokers and dealers once the new exchange goes live.
- The SET expects cryptocurrencies (digital assets) to grow in the future as investors gain more understanding of the asset class.
- The national exchange also wants to catch the growing investment trend of digital assets and possibly make a profit from it.
Without a doubt, these are valid reasons for the Stock Exchange of Thailand (SET) to seek entrance into the crypto industry.
So, what happens when a national stock exchange decides to launch a crypto asset exchange?
The simple answer is that more citizens will buy into the idea of investing in cryptocurrencies, which will, in turn, lead to a massive flow of cash into the crypto markets.
Mrs. Pattera confirmed this in the report when she said that SET would have more “capital and trust” at their disposal than other licensed cryptocurrency exchanges operating in Thailand. The reason for this is that the national stock exchange has the trust of thousands of individual and institutional investors and will have more clients if they introduce cryptocurrencies to their clients.
Excitingly, it will be the same as when a government endorses cryptocurrency investment for its citizens. We can count on events like this to bring about the long-awaited time when cryptocurrencies will compete with and even outperform traditional assets.
Thailand is setting a precedent and there is a good reason to believe that we are edging closer to mainstream adoption of cryptocurrency.
Suggested Read – Thailand’s Central Bank is Developing a new Cryptocurrency
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