According to Ravi Menon, Singapore should not ban bitcoin and altcoins because they can play an important role in the digitized future.
The Monetary Authority of Singapore’s head, Ravi Menon, sees a lot of potential in the cryptocurrency industry. As a result, he vowed that the local regulator will not outright ban the asset class, but rather put in place an appropriate regulatory framework.
The executive also expressed optimism that Singapore will become a global leader in the cryptocurrency space.
Cryptocurrency prohibition is not on the table.
Ravi Menon, Managing Director of the MAS, has spoken out about the cryptocurrency industry and its potential future integration into the city-financial state’s network.
He predicted that the digital asset space could go one of three ways: “it could go nowhere, it could cause a lot of turmoil, or it could lead to a very good outcome for the economy and society.” Singapore must be prepared for any outcome, and as such, the authorities must monitor technology and gain a thorough understanding of blockchain networks and smart contracts.
Unlike China, the MAS does not intend to crack down on the industry because it has the potential to be a key player in the digitized future. Instead, the watchdog should enforce “strong regulation” to protect companies and individuals when dealing with the asset class:
“We believe that the best approach is not to restrict or prohibit these activities… There are serious risks, the most obvious of which are money laundering and terrorist financing.”
Despite claiming that digital assets have “some advantages” over fiat currencies, Menon dismissed the possibility of bitcoin becoming legal tender in Singapore, claiming that it lacks the status of “real money.” Due to BTC’s increased volatility, he advised only experienced investors to deal with it:
“If you want to treat it as an investment asset, you’d better know what you’re doing; the volatility is not for the faint of heart.”
Singapore Is a High-Achieving City-State.
Keeping in mind the spread of digitalization in the coming years, Menon believes Singapore must remain “well-positioned” and even become a global hub for cryptocurrency-related businesses.
This may appear to be good news for locals who appear to be interested in digital assets. According to one study, 43 percent of Singaporeans own some form of cryptocurrency, and 46 percent plan to enter the market within the next year.
The general public is also aware of bitcoin, as 93 percent of those polled said they had heard of it. 25% referred to it as “digital gold” and a “store of value.”