According to the Central Bank of Singapore, cryptocurrencies pose a danger for retail investors - Bitxcon
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According to the Central Bank of Singapore, cryptocurrencies...
Economy, News

According to the Central Bank of Singapore, cryptocurrencies pose a danger for retail investors

The growing trend toward private cryptocurrencies for payment and value is not good news for the Central Bank of Singapore

This week, the agency issued warnings about the dangers that retail investors face. CNBC reported that he said that cryptocurrency investors could lose their money due to being subjected to “strong speculation swings”.

Ravi Menon is the chief executive of the Monetary Authority of Singapore, which acts as central banking. He said that the bank “frowns upon cryptocurrencies or tokens [as an investment asset] for retail investors.”

Menon said that the prices of crypto tokens were not based upon economic fundamentals, and are subject to strong speculation fluctuations during a conference at Singapore Fintech Festival.

Later, he added: “Investors who invest in these tokens run significant risk of losing their investment.”

Volatility in BTC and ETH

Bitcoin and Ethereum, two of the most popular cryptocurrencies worldwide, reached new highs Monday. BTC traded at $ 68.000 on Monday before falling to $ 67.442 by 9:40 EST Wednesday. Ether traded at $ 4.813.94 the day prior and reached $ 4.784.95 the next day.

BTC has risen 130% this year, and ETH has risen 550%. You should take advantage of this by investing in established platforms like Bitcoin Pro. These sudden changes are why the Singapore issuer didn’t trust the stability of major cryptocurrencies.

This year, private digital currencies have been under intense speculative pressure. Last February’s tweets by Tesla CEO Elon Musk claiming that Tesla would accept Bitcoin payments for its cars had a significant impact on the price of BTC. Then, in May, Musk claimed that Tesla would never do this again. This led to a terrible accident.

Coinbase’s April IPO has been another landmark event for the industry, and cryptocurrencies generally. China then banned cryptocurrencies and the price of cryptocurrencies dropped again.

No rush for a Singapore digital dollar

Singapore is not in rush to create a central bank digital currency, as some other countries have done. According to the head of central banking, “the case for a retail CBDC in Singapore does not seem urgent.”

Menon also confirmed his comments by saying that the issue was controversial and sensitive, and that there are no solid reasons why the government should support or oppose it. He did however mention that physical money is overdue and digital dollars are “moot” at the moment.

The CEO of the issuing bank does not deny the benefits of digital fiat currency, such as financial inclusion and improved access to the country’s financial services. He said that this was not yet convincing enough for the government.

He stated that many users still have traditional bank accounts. He said that electronic payments in Singapore are widespread, efficient, and competitive.

The official noted that there was a compelling reason for a digital currency to be issued. This would prevent private stablecoins or CBDCs from foreign countries from replacing Singapore dollars (SGF).

He is concerned that SGF could be in direct competition with digital currencies as they become more accessible and enter the market. He believes that such a scenario is unlikely for the moment.

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