Singapore, one of the world’s leading cryptocurrency economies, has no plans to ban Bitcoin. Ravi Menon, the managing director of the Monetary Authority of Singapore has confirmed they are interested more in the potential of digital currencies. The country would rather implement the appropriate regulatory framework.
Speaking to Bloomberg, Mr Menon confirmed banning crypto and attacking web 3.0 is not an option for Singapore. Instead of going down the China crypto crackdown way, Singapore will be looking to safeguard from various risks related to crypto progress. This will be in a bid to make the country a crypto hub as it becomes a key player in the digitised future.
The regulatory authority understands that digital currencies can either cause a lot of turmoil, go nowhere or have a good outcome for the economy and society. All it can do now is prepare for all the possible outcomes. This is done through observing crypto technology, understanding blockchain technology and smart contracts.
To safeguard the entities in the crypto industry, the country will keep on its high requirements for crypto businesses looking to obtain licenses. They would rather have fewer crypto businesses operating in the country but with higher standards.
It is strictly regulated standards that have seen Singapore rise to become one of the world’s leading fintech and wealth management hubs. A similar approach to crypto business can also work perfectly as it ensures customer confidence and satisfaction which eliminates various industry risks.
Even though Singapore is not planning to ban Bitcoin, it has no plans to make it a legal tender. While Menon argues that digital currencies have benefits over fiat currencies, he believes they do not have the status of “real money.” He also encourages only experienced investors to deal with Bitcoin due to volatility concerns.
Singapore joining other countries in not banning Bitcoin
Singapore is the latest country to declare they have no plans to ban Bitcoin and instead provide proper regulations. Following China’s stance on crypto activities, various countries have been stating their outlook on digital currencies.
Russia was one of the first countries to declare it will not ban cryptocurrencies. The US has also confirmed that they have no plans to ban digital currencies. Instead, they will only be looking into the operations of the stablecoins.
Australia is also at par with Singapore and is looking to become a cryptocurrency hub. Already, the Australian senate committee has outlined various ways to boost the crypto industry in the country.
With all these big economies supporting cryptocurrencies, the future of digital currencies seems assured. It also allows for partnerships and collaborations between various economies using blockchain technology and crypto payments. For example, Australia and Singapore have already completed the blockchain-based trial of cross border trade docs. With a similar crypto stance, they can increase the collaboration to various industries.
