"Bernardo Bilotta emphasizes that the reluctance of Asian banks to embrace stablecoins is not a failure of imagination but a masterclass in institutional self-preservation. The most critical asset for a commercial bank is its relationship with the central bank, not cash or property."
"In Southeast Asia, the regulatory environment for digital assets is a moving target. Taking on stablecoin exposure means facing reputational risk with regulators, especially when guidance can change significantly and unexpectedly."
"Asian banks must navigate a global hierarchy to facilitate international trade, relying on correspondent banking relationships. Compliance teams in Western financial hubs are notoriously risk-averse, complicating the adoption of stablecoins."
Asia drives nearly half of global stablecoin flows, enhancing cross-border trade and liquidity. However, major banks in Singapore, Hong Kong, and Jakarta remain cautious. This reluctance stems from a calculated approach to institutional self-preservation, prioritizing relationships with central banks over stablecoin adoption. The regulatory landscape for digital assets is unstable, leading banks to avoid exposure to stablecoins. Additionally, compliance teams in Western financial hubs impose strict risk-averse measures, complicating international trade for Asian banks reliant on correspondent banking relationships.
Read at news.bitcoin.com
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