Gold in the Year of Pandemic: Challenges that defined digital gold’s shine

Photo by Evie Shaffer from Pexels
A shining year: Gold’s rise in 2020, peaking at an all-time high, hitting US$2,070.05 per ounce.
Source: GoldPrice.org
Rallying at an all-time high: Bitcoin has enjoyed a successful year as the cryptocurrency set a new price record amidst the coronavirus pandemic. Source: CoinMarketCap
  • Accessibility: As we witness the mass push for digital options from payments to banking and investing, digital gold has seen a substantial increase in volume from the previous year. We can expect a greater demand for digital assets from Latin American countries and Indonesia as crypto adoption continues to gain traction across these nations. Digital gold also has a promising future in Indonesia as it gains momentum from the backing of regional powerhouses like Gojek who recently forayed into the digital gold sector, launching GoInvestasi. With the gaining investor interest in digital assets and the increased number of investment options, accessibility to digital gold is expected to increase as the industry continues to mature.
  • Market Infrastructure: Major banks from across the world are already looking towards digital assets. From Banque de France looking to use the digital euro in interbank settlements to China’s central bank’s ambitions to introduce a sovereign digital currency and DBS’s recent launch of a digital exchange, it is becoming more apparent that digital assets have the support from traditional financial institutions. With the backing of reputable institutions, the digital assets market will gain greater reputation, demand and interest, pushing the industry to higher frontiers.
  • Funding: With the growing importance of digital assets, more governments are launching blockchain programmes to support developments in the space. The Singapore government, for example, has recently launched a new research programme with S$12 million in funding, aimed to commercialise and encourage the adoption of blockchain technology. Having the growing support from regulatory powers and governments, the digital assets sector can expect to grow even further in a conducive blockchain ecosystem.

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