In today’s world, cryptocurrencies are a very controversial topic. This technology is so interesting and futuristic that it is gaining new followers all the time. Due to the increase in its popularity, cryptocurrencies can no longer be passed over indifferently. This is especially true for countries that have had to adopt appropriate laws and regulations on this issue. Some countries, such as El Salvador – are adapting crypto as a legal means of payment, while others – like China – are banning them altogether. In this article, we will touch on Singapore and how the Singaporean government approaches the topic of cryptocurrencies.
MAS, or Monetary Authority of Singapore, is nothing more than the central bank of Singapore, or the highest financial institution in the city-state. In a recent interview with Bloomberg, Ravi Menon, the managing director of MAS, revealed his stance on the cryptocurrency industry and also the future of this technology.
It turns out that the managing director of MAS looks at cryptocurrencies with an extremely favorable eye. It is in this sector that he sees the future of the financial industry, and as such, he has declared that Singapore does not intend to ban the use and trading of cryptocurrencies. Ravi Menon also expressed his hopes that Singapore will become a leader in this space in the future.
Three possible scenarios
In the aforementioned interview, Ravi Menon noted that the cryptocurrency situation could unfold in three ways. The first is the possibility of a failed investment or “bubble,” a situation in which cryptocurrencies prove to be worth little. The second possibility is the introduction of great confusion in the market, while the third and also the most positive – the development of the economy and society. It is because of this third possibility that Singapore plans to remain open to the development of cryptocurrencies.
Unlike China’s strict approach, Singapore does not plan to ban cryptocurrencies altogether. Instead, the country’s government intends to implement strong regulations so that corporations and citizens are protected when working with the asset class.
At the same time, however, Singapore rejects the possibility of implementing cryptocurrencies as legal tender. In saying this, Ravi Menon specifically mentioned Bitcoin (BTC), claiming that it does not have the status of “real money”. So, how will Singapore go forward with the implementation of crypto regulations? We will keep you posted on this on our portal!