Ravi Menon, the head of Monetary Authority of Singapore, sees great potential in the cryptocurrency market. He vowed, therefore, that the local regulator would not ban cryptocurrency but instead implement a suitable regulatory framework.
He also expressed hope that Singapore could be a global leader in cryptocurrency.
Banning Crypto is Not On The Agenda
Ravi Menon, Managing Director at the MAS, spoke out about his views on cryptocurrency and how it might be implemented in the financial system of the city-state.
He said that the space for digital assets could be in three different directions. “It could go nowhere, it might cause a lot more turmoil, or it may lead to a very positive outcome for society and the economy.” Singapore authorities must monitor the technology and learn about smart contracts and blockchain networks.
The MAS is not planning to crackdown on China’s industry, as it could be a key player for the digitized future. Instead, the watchdog should enforce “strong regulations” to ensure that companies and individuals are protected when dealing with this asset class.
“We believe that the best approach to these matters is not to ban or clamp down on them… There are serious risk: money laundering and terrorist financing are two of the most obvious.
Menon argued that digital assets are more beneficial than fiat currencies in some respects, but he rejected the possibility that bitcoin could become legal tender in Singapore. He claimed that BTC does not have the status “real money” and advised only experienced investors to use it because of its volatility.
It is not for the fainthearted, so it should be treated as an investment asset.
Ravi Menon Source: The Straits Times
Singapore Is Aiming High
Keeping in mind the spreading digitalization in the years to follow, Singapore needs to stay “well-positioned” and even become a global hub for cryptocurrency-related businesses, Menon opined.
This may sound good news for the locals who are well-versed in digital assets. Research revealed that 43% of Singaporeans own crypto and 46% said they would be entering the market within the next year.
The participants also reported high levels of awareness, with 93% reporting that they had heard of bitcoin. 25% described it as “digital gold”, and a “store for value”.
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