The Singapore Monetary Authority’s chief, Ravi Menon, sees a lot of promise in the bitcoin market. As a result, he said that the local regulator will not outright prohibit the asset class, but will instead establish a proper regulatory framework.
Singapore, according to the CEO, has the potential to become a worldwide leader in the bitcoin field. Ravi Menon, the Managing Director of the MAS, gave his views on the cryptocurrency business and its potential future integration into the city-financial state’s network in a recent interview with Bloomberg.
“It may go nowhere, it could generate a lot of chaos, or it could lead to a really wonderful conclusion for the economy and society,” he said, predicting three possible outcomes for the digital asset area. Singapore must be prepared for every eventuality, therefore officials must keep a close eye on technology and get a thorough understanding of blockchain networks and smart contracts.
Unlike China, the MAS does not plan to crack down on the business since it has the potential to be a major participant in the digital future. Instead, the watchdog should implement “strengthened regulation” to safeguard businesses and individuals when dealing with the asset class:
“We think the best approach is not to clamp down or ban these things… There are serious risks: money-laundering, terrorist financing are the obvious ones.”
Despite agreeing that digital assets had “certain advantages” over fiat currencies, Menon dismissed the idea of bitcoin becoming legal tender in Singapore, noting that it lacks the legitimacy of “true money.” Due to its increased volatility, he encouraged only experienced investors to engage with BTC:
“If you want to treat it as an investment asset, you’d better know what you are doing, it is not for the fainthearted because of the volatility.”