The Head of Singapore’s Central Bank Believes Crypto Has No Future in Financial Services
The managing director of the Monetary Authority of Singapore (MAS), Ravi Menon, recently stated that cryptocurrencies have failed as digital money. In a speech earlier this month, Menon highlighted the poor performance of cryptocurrencies as a medium of exchange and store of value, citing their volatile prices and significant losses suffered by investors. He further expressed his belief that crypto assets will eventually fade away, as people only buy and sell them for quick profits rather than holding them as long-term investments.
Predicting the Future Monetary System
During a panel discussion, Menon shared his vision for the future monetary system. He believes it will consist of central bank digital currencies (CBDCs), tokenized bank liabilities, and regulated stablecoins. Menon emphasized that MAS has been actively working on developing a robust regulatory framework for stablecoins. However, he noted that it will take at least a year for the legislative amendments to be ready, and in the meantime, MAS will acknowledge stablecoin entities that already comply with its regulatory framework.
Retirement Plans
Menon is set to retire at the end of the year. His retirement comes after years of leading MAS and facing challenges in shaping Singapore’s financial landscape. Despite his impending departure, Menon remains committed to promoting the adoption of CBDCs and other traditional financial products over cryptocurrencies.
Hot Take: The Future of Crypto in Financial Services
Ravi Menon’s skepticism about the future of crypto in financial services reflects his belief that cryptocurrencies have not proven themselves as reliable mediums of exchange or stores of value. While some may disagree with his perspective, it is clear that central banks like MAS are increasingly focused on exploring and developing their own digital currencies. As the regulatory landscape continues to evolve, it remains to be seen how cryptocurrencies and CBDCs will coexist in the future financial ecosystem.
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