Contrary to the bans of China, one of the world’s largest economies, on Bitcoin and cryptocurrencies, Singapore, a Far Eastern country, is taking positive steps regarding cryptocurrencies.
Ravi Menon, head of the Monetary Authority of Singapore (MAS), continued by stating in a recent interview with Bloomberg that there is a lot of potential in the cryptocurrency industry:
“We think the best approach is not to restrict or ban these things. We think it would be more beneficial to introduce a clear regulation instead of prohibitions and restrictions.”
After stating that Singapore has a goal of becoming the world capital for crypto-related businesses, MAS head Menon said, “Singapore could have lagged behind technology had it not made a head start on cryptocurrencies.” said.
Although countries around the world have different approaches to the crypto industry, Menon, who has been the head of MAS for 10 years, said:
“Crypto-based activities are fundamentally a fuzzy and forward-looking investment in the future. But failing to enter this game risks Singapore being left behind.
Starting this game early means we can get off to an advantageous start and better understand the risks as well as the potential benefits.”
Bitcoin Has No Chance To Become A Legal Currency!
Although Menon said that digital currencies have advantages over fiat currencies, he stated that Bitcoin is not likely to become a legal currency in Singapore.
Thinking that Bitcoin is not “real money” due to its volatile nature, Menon said that only experienced investors should be interested in Bitcoin.
“If you want to treat Bitcoin as an investment asset, you better know what you’re doing. Because of its volatility, Bitcoin is not for cowards.”
Finally, Menon said that Singapore is increasing its safeguards against all risks, including illegal activities, and said, “We are interested in developing crypto technology, understanding blockchain, smart contracts and preparing ourselves for a Web 3.0 world.”