Business News Asia
Many central banks and governments see cryptocurrencies as a huge risk. On the one hand, they argue that cryptocurrencies are used by criminals to launder money, for example. Although there is data that revises this statement as less than 0.4% of criminal activity is attributable to cryptocurrencies, according to a report by Chainalysis.
On the other hand, they say that especially retail investors can suffer heavy losses because cryptocurrencies are not regulated. Another argument is that the crypto market is too volatile and prices can double or halve within a few hours. Of course, the central bankers and politicians, as always, only want to guarantee the best for the small investor and his safety.
Now the central bank of Singapore has expressed its opinion on cryptocurrencies and of course, they also see enormous risk for investors due to the high volatility. Furthermore, the prices for cryptocurrencies do not move due to economic backgrounds but are purely speculative. Even if the Central Bank of Singapore does not yet see the need for its own cryptocurrency, the central bank is not against the new technology, but rather wants to make it more secure with appropriate regulations.
Thus, the Central Bank of Singapore also sees no need to ban cryptocurrencies unlike China, which has already banned cryptocurrencies several times. In a recent interview, Monetary Authority of Singapore Managing Director Ravi Menon said that the authority disapproves of cryptocurrencies or tokens as an investment for retail investors.