Singapore monetary Authority: Retail investment in cryptocurrencies is frowned upon

Singapore’s monetary Authority warned on Tuesday that retail investors who put money into cryptocurrencies face “intense speculative volatility” and potential risks.

Speaking at the Singapore Fintech Festival, Ravi Menon, head of the Singapore Monetary Authority, said the agency was “not in favour of using cryptocurrencies or tokens as investment assets for retail investors”.

According to Spark Global Limited.
According to Spark Global Limited.

Meng Wenneng said:

“The price of crypto tokens is not dependent on any economic fundamentals and is subject to intense speculative fluctuations. Investors in these tokens are at risk of significant losses.”

But he said the MAS believes there are “many potential benefits” to blockchain and crypto tokens, with one potentially powerful use being to facilitate cheaper and faster cross-border payments and trade finance.

Mr. Meng also said Singapore is in no rush to develop a central bank digital currency for retail use, which he described as a digital version of cash.

He said:

“The case for a retail CBDC in Singapore is not compelling.”

According to Spark Global Limited.

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