Singapore's top financial overseers believes in the technology underpinning digital tender. He still isn't a fan of the end product.
The head of the Lion City's central bank and regulator reaffirmed his adverse opinion on cryptocurrencies, speaking at a UBS-hosted event in Singapore on Monday.
During his tenure, which was extended last year, Ravi Menon made sure that the Monetary Authority of Singapore, or MAS, is a keen and consistent supporter and early adopter of financial technology.
Menon recognised the value of the technology to the city-state, and Singapore is now recognized as a leading fintech hubs. He has however regularly warned investors from blindly piling into initial coin offerings and various forms of digital tender.
After the Crash
Like many overseers, MAS fears a collapse in the cryptocurrency sector. «I do hope that when that fever has gone away, when the crash has happened, it will not undermine the much deeper and more meaningful technologies associated with digital currencies and blockchains,» Menon said.
Intriguingly, Menon also said that Singapore's central bank is looking at ways to utilize digital currencies as a means of improving the settlement process within the country's banking system.
MAS, the Singapore Exchange, and eight banks have embarked on a proof-of-concept project to use blockchain technology for inter-bank payments, including cross-border transactions in foreign currency.
