It’s no secret that Bitcoin is facing one of its biggest challenges right now, as 2018 has seen the cryptocurrency shackled by a major drop in price. While it’s never a good thing to see Bitcoin fall in value, there is certainly no need for anyone to hit the panic button. In a prior blog we addressed the reasons as to why the Bitcoin crash fears were massively overblown, and it appears that the managing director of MAS (Monetary Authority of Singapore) shares similar sentiments. Ravi Menon, one of Asia’s most pivotal financial figures, has backed the cryptocurrency market to make a full recovery once the dust related to the latest drop has settled.
Taking a stand
Menon took a stand against the cryptocurrency doubters during a CNBC interview back on January 15th, he said, “I do hope when the fever has gone away, when the crash has happened, it will not undermine the much deeper, and more meaningful technology associated with digital currencies and blockchain.” What was interesting is that while he was happy to address the idea of a potential “crash”, he didn’t make any specific reference to when he expects it to occur and what its cause might be.
No regulation in the pipeline
When anyone mentions Asia and the cryptocurrency market most immediately think of Japan, and for good reason, as no market has embraced the Bitcoin revolution any more openly. Singapore, on the other hand, has carried a much more reserved outlook on cryptocurrencies. Official documentation from Singapore authorities reads, “Remain alert to money laundering and other potential risks”. However, while the reception Bitcoin has received has been lukewarm, the MAS has seemingly allowed it to operate “as is”, with it seeing no cause to push through regulations measures at the current time. Menon commented on Singapore’s official stance on Bitcoin during an October 2017 Bloomberg interview when he said, “As of now I see no basis for wanting to regulate cryptocurrencies.”
The immediate plans for MAS are apparent, as digital currency regulation isn’t in the pipeline. But, that hasn’t stopped them from issuing a public warning regarding Bitcoin acquisition, aside from addressing its investment attributes, they’ve also stressed the “significant risks” in acquiring cryptocurrencies, advising citizens to “act with extreme caution”. Menon finished up his CNBC appearance by stating that he wouldn’t dismiss the idea of Singapore’s central bank stepping up to issue cryptocurrency directly to the public in the future.
Bank on Bitcoin’s comeback!
Singapore isn’t likely to become a frontrunner for the Bitcoin cause anytime soon, but the support of Ravi Menon is surely telling. Doubters might be quick to write yet another ill-advised Bitcoin-obituary, but with prominent financial figures backing a future recovery, you can be pretty sure that Bitcoin is anything but on its deathbed.