Treasury Management International (TMI) will today discuss at a panel event whether crypto-currency is a viable treasury asset.
TMI is a world-renowned publishing firm, providing analysis and insights to corporate treasurers. TMI is currently conducting research related to cryptocurrency assets and their practical applications. As part of this project, TMI collaborated with Diginex, a Nasdaq-listed company.
TMI’s study is taking place in the context of companies changing their capital allocation strategy and buying more crypto-currencies. The central banks’ response to global lockdowns during the COVID-19 pandemic has led to lower profits for companies and depreciation of cash value. Cash-rich companies, like Tesla, are buying crypto-assets, hoping these can hedge against inflation.
Investment analysts expect that the adoption of crypto assets will rapidly increase in the next few years. In the short term, individual companies will drive the early adoption of crypto-currencies. However, banks, which have been the wariest of investing in crypto-currency, may also move to invest in them in the next few years. Bank adoption of crypto-currency would likely be motivated by fears of inflation after the pandemic and increasing client demand for these new forms of exchange.
An analyst on the Current Developments Team, Manisha focuses on Korean Peninsula and East/Southeast Asian politics. She contributes regularly to the Daily Brief.