Bitcoin Won’t Do a Lehman Collapse: Singapore Central Bank FinTech Chief

The money technology chief of Singapore’s financial organisation doesn't foresee a situation wherever bitcoin would trigger a worldwide money meltdown resembling the 2008 collapse of investment bank Lehman Brothers.

In associate degree interview with Channel News Asia, Sopnendu Mohanty – chief of economic technology at the financial Authority of Singapore, the country’s financial organisation, opined bitcoin won't cause a worldwide money crisis within the event of a value collapse. The financial organisation official insisted international regulators square measure “getting serious regarding this whole cryptocurrency market”, suggesting authorities would step in with laws once bitcoin markets still grow globally.

He stated:

We know specifically once to intervene, supported the market size and therefore the demand and dealings volume, and that we can are available in at the correct time. So, I’m not excessively upset regarding about to some massive economic system crisis.

Specifically, Mohanty pointed to shopper protection laws to deal with ‘the hype’ encompassing cryptocurrency markets.

Singapore, long seen as a technology-forward society, has emerged as a worldwide FinTech hub and has – through its financial organisation – had lots to mention regarding cryptocurrencies, blockchain technology and ICOs (initial coin offerings) recently.

After taking a for the most part passive stance on suburbanized cryptocurrencies like bitcoin over the years, Singapore’s financial organisation cautioned the overall public against cryptocurrency investments in Dec, at a time once bitcoin value was commercialism at uncomparable high close to $20,000.

In October, the pinnacle of Singapore’s financial organisation insisted that bitcoin itself didn’t would like any oversight as a cryptocurrency. Instead, MAS chief Ravi Menon insisted a regulator’s focus need to get on the abuse of cryptocurrencies for illicit finance and alternative hot activities. “So, those [regulatory] needs apply to the activity around cryptocurrency, instead of the cryptocurrency itself,” Menon same at the time.

Further, the central banker insisted that cryptocurrencies had wider applications additionally to their use as a store valuable.

The MAS chief said:

If it [cross-border remittance] was rummaging a blockchain exploitation cryptocurrencies, it might yield advantages. That need to be the question, instead of whether or not bitcoins or ether square measure intensifying in price or not.

After supplying a public informatory urging the general public to be diligent in investments into initial coin offerings (ICOs) in August, the financial organisation discharged official pointers for ICO operators in Nov.

Featured image from Flickr/sachab.

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