Ravi Menon – the head of Singapore’s Monetary Authority – sees a lot of potential in the cryptocurrency industry. He therefore promised that the local regulatory authority would not ban the asset class, but would implement a corresponding regulatory framework for it.
The executive also raised hopes that Singapore could become one of the world’s leading providers in the field of cryptocurrencies.
The ban on crypto is not on the agenda
In a recent interview for Bloomberg, Ravi Menon – Managing Director of MAS – revealed his stance on the cryptocurrency industry and its possible future implementation in the city-state’s financial network.
He predicted that there are three possible scenarios in the digital asset space: “There is nowhere to go, it could cause a lot of turmoil, or it could lead to a very good outcome for the economy and society.” Singapore needs to be prepared for any outcome, and so it should authorities observe the technology and understand blockchain networks and smart contracts.
In contrast to China, the MAS is not considering cracking down on the industry as it can be an important player in the digitized future. Instead, the watchdog should enforce “strong regulation” so that companies and individuals can be protected when they operate with the asset class:
“We think the best approach is not to restrict or prohibit these things … There are serious risks: money laundering, terrorist financing are the obvious ones.”
Although he argues that digital assets have “some advantages” over fiat currencies, Menon rejected the possibility of Bitcoin becoming legal tender in Singapore, claiming that it did not have “real money” status. He only advised seasoned investors to look into BTC due to the increased volatility:
“If you want to treat it as a fixed asset, you better know what you’re doing, it’s not for the faint of heart because of the volatility.”
Ravi Menon, source: The Straits Times
Singapore aims high
With digitalization spreading in the years to come, Singapore must remain “well positioned” and even become a global hub for cryptocurrency-related companies, Menon said.
This might sound like good news to locals who seem to be well versed with digital assets. Research found that 43% of Singapore residents own some form of crypto, while 46% claimed to enter the market next year.
Mass awareness is also at a high level, with 93% of participants saying they have heard of Bitcoin. 25% even called it “digital gold” and a “store of value”.
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