Beating the drum
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The fiscal technology chief of Singapore’s central bank does not foresee a master where bitcoin would trigger a global financial meltdown akin to the 2008 come to naught of investment bank Lehman Brothers.
In an interview with Channel Good copy Asia, Sopnendu Mohanty – chief of financial technology at the Monetary Power of Singapore, the country’s central bank, opined bitcoin will not occasion a global financial crisis in the event of a price collapse. The central bank proper insisted global regulators are “getting serious about this undamaged cryptocurrency market”, suggesting authorities would step in with usuals when bitcoin markets continue to grow globally.
We identify exactly when to intervene, based on the market size and the demand and annals volume, and we will come in at the right time. So, I’m not overly worried round getting to some large financial system crisis.
Specifically, Mohanty serrated to consumer protection regulations to address ‘the hype’ surrounding cryptocurrency demands.
Singapore, long seen as a technology-forward society, has emerged as a global FinTech hub and has – including its central bank – had plenty to say about cryptocurrencies, blockchain technology and ICOs (endorse coin offerings) recently.
After taking a largely hands-off viewpoint on decentralized cryptocurrencies like bitcoin over the years, Singapore’s significant bank cautioned the general public against cryptocurrency investments in December, at a in good time dawdle when bitcoin price was trading at all-time high near $20,000.
In October, the be in of Singapore’s central bank insisted that bitcoin itself didn’t demand any oversight as a cryptocurrency. Instead, MAS chief Ravi Menon insisted a regulator’s converge ought to be on the abuse of cryptocurrencies for illicit financing and other illegal motions. “So, those [regulatory] requirements apply to the activity around cryptocurrency, more readily than the cryptocurrency itself,” Menon said at the time.
Further, the inner banker insisted that cryptocurrencies had wider applications in addition to their use as a preserve of value.
The MAS chief said:
If it [cross-border remittance] was going through a blockchain functioning cryptocurrencies, it could yield benefits. That ought to be the question, fairly than whether bitcoins or ether are going up in value or not.
After issuing a community advisory urging the public to be diligent in investments into initial fabricate offerings (ICOs) in August, the central bank released official guidelines for ICO big wheels in November.
Featured image from Flickr/sachab.
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