Crypto boom 'more than just a fad'
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Crypto boom 'more than just a fad'

Executive sees shift in financial system

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Participants contemplete Bitcoin related art during Adopting Bitcoin 2024 – The high signal Bitcoin conference for builders, in Nuevo Cuscatlan, El Salvador, November 16, 2024. (Reuters photo)
Participants contemplete Bitcoin related art during Adopting Bitcoin 2024 – The high signal Bitcoin conference for builders, in Nuevo Cuscatlan, El Salvador, November 16, 2024. (Reuters photo)

The crypto boom following the US election has pushed the price of Bitcoin, the world's most popular cryptocurrency, to a new all-time high of more than 3 million baht, say industry executives.

The surge in crypto prices after the US election is more than just a fad, indicating a major shift in the global financial system amid political and policy changes that are having a wide impact, said Nirun Fuwattananukul, chief executive of Gulf Binance.

A combination of favourable policies, institutional acceptance and technological developments are laying the foundation for a new financial system, he said.

"We are at a critical turning point. The growth of the crypto market is not just about price, but a fundamental change in the way we manage and access financial services. This change will affect all sectors of the global economy and will determine the future of the financial system for the next decade," Mr Nirun said.

Peerapat Hankongkaew, chief investment officer of Cryptomind Advisory, said president-elect Donald Trump has a policy to make Bitcoin the national reserve currency of the US. When that policy takes root, Bitcoin will again set a new record high price, he said.

"Investing in Bitcoin now would be worthwhile to capitalise on the long-term trend," said Mr Peerapat.

Bitcoin may be an asset to protect itself from inflation. In addition, the increasing demand has caused the price to rise even higher.

"If the US can make Bitcoin a reserve currency, other countries will have to follow," he said.

BlackRock, the world's largest asset manager, has a gold exchange-traded fund (ETF) that takes about 20 years to reach a value of US$30 billion, but investing in the Bitcoin ETF took only one year to reach a value of $30 billion, said Mr Peerapat.

He said over the long term, Bitcoin can maintain its bull run.

"The increase is just starting and now is the time to buy," said Mr Peerapat. "Bitcoin is seen as a store of wealth. It is a new asset that can substitute for money. The amount to invest in Bitcoin should match your level of knowledge of the cryptocurrency."

Speculation on Bitcoin after the US election drove the price to surpass $91,000 on Nov 14.

"This market movement is not just about price, but a structural change in the financial ecosystem that will determine the future of the global financial system," said Mr Nirun.

"Financial institutions are making major adjustments to meet growing customer demand and business opportunities. We are seeing a clearer convergence between traditional and digital finance, driven by policy and institutional acceptance," he said.

"This reshuffle signals a clear recognition of the role of crypto at the policy level. We expect to see the development of a more pro-innovation legal and regulatory framework, while maintaining a focus on investor protection and system stability."

The development of technological infrastructure, the creation of new products and services, and the development of personnel with expertise in digital assets are occurring rapidly in the financial sector. These changes will help increase efficiency and reduce costs in the overall financial system.

In terms of investment product development, the industry is starting to see the rise of more sophisticated financial instruments, such as digital asset-based ETFs, derivatives and structured products that combine digital and traditional assets. These financial innovations will increase the liquidity and efficiency of the market.

The integration of traditional and digital financial markets is accelerating, especially in terms of infrastructure, payment systems and risk management.

Leading financial institutions around the world are investing heavily in blockchain technology and digital systems to support the growth of the digital asset market, he said.

"The future of capital markets will be a seamless integration of traditional and digital systems. This shift will affect the allocation of capital worldwide, especially in emerging markets that may benefit from easier access to funds, lower transaction costs and increased fundraising efficiency," said Mr Nirun.

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