Ravi Menon – the head of the Monetary Authority of Singapore – sees a lot of potential within the cryptocurrency industry. As such, he vowed that the local regulator won’t ban the asset class however moderately implement an appropriate regulatory framework on it.
The manager additionally raised hopes that Singapore can develop into one of many world leaders in the cryptocurrency space.
Banning Crypto Is Not on The Agenda
In a recent interview for Bloomberg, Ravi Menon – Managing Director of the MAS – revealed his stance on the cryptocurrency industry and its doable future implementation in the city-state’s monetary network.
He predicted that there are three possible scenarios in front of the digital asset space: “it may go nowhere, it may trigger a lot of turmoil, or it may result in an excellent final result for the economic system and society.” Singapore should be prepared for each final result, and as such, the authorities ought to observe the technology and perceive blockchain networks and smart contracts.
Not like China, the MAS doesn’t contemplate a crackdown on the trade as it may be a key player in the digitized future. Instead, the watchdog ought to implement “strong regulation” so corporations and people may be protected when working with the asset class:
“We predict the best method is not to clamp down or ban this stuff… There are critical risks: money-laundering, terrorist financing are the obvious ones.”
Regardless of arguing that digital assets have their benefits over fiat currencies “in some regards,” Menon rejected the possibility of bitcoin becoming legal tender in Singapore, claiming that it doesn’t have the standing of “real money.” He suggested only skilled traders to deal with BTC attributable to its enhanced volatility:
“If you want to treat it as an funding asset, you’d better know what you’re doing, it isn’t for the fainthearted due to the volatility.”
Singapore Is Aiming High
Protecting in thoughts the spreading digitalization within the years to comply with, Singapore wants to stay “well-positioned” and even develop into a worldwide hub for cryptocurrency-related businesses, Menon opined.
This could sound like excellent news for locals, who appear nicely into digital assets. Analysis revealed that 43% of the residents of Singapore own some type of crypto, whereas 46% asserted they might enter the market within the next year.
Mass awareness can be at high ranges since 93% of the members mentioned they’ve heard of bitcoin. 25% even described it as “digital gold” and a “store of value.”