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One of the largest banks in the Middle East, Emirates NBD, which manages assets totaling approximately AED 1 trillion ($272 billion), is exploring the possibility of incorporating bitcoins into its investment portfolio.
The bank’s investment director, Maurice Gravier, clarified that while the bank has not yet begun purchasing bitcoins, it views this asset as an effective means of capital preservation. Gravier referred to BTC as digital gold and expressed confidence in the long-term prospects of the cryptocurrency, citing the limited supply of 21 million bitcoins as a factor that can drive demand. The executive at Emirates NBD also expressed optimism regarding the reliability of the proof-of-work (PoW) consensus mechanism.
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Initially, bitcoin was intended as an alternative to the international financial system, but it has now established itself as a store of value, and the banker believes that no other cryptocurrency will be able to displace it. Emirates NBD acknowledges the high volatility of the crypto asset and its close correlation with the stock market. The bank announced that it prefers to proceed cautiously and plans to allocate no more than 0.5% of its portfolio to bitcoin.
Previously, billionaire Paul Tudor Jones stated that bitcoin should be included in every investment portfolio, as the cryptocurrency can protect capital from inflationary risks that are exacerbated by the rising U.S. national debt.
