Following a study on the digital currency and its circulation by the country's central bank, the Singaporean deputy prime minister said there was no reason to ban circulation of the digital currency among the population.
Singapore's Deputy Prime Minister and Central Bank Minister Tharman Shanmagharathnam was speaking at a parliamentary session yesterday when he was asked questions about any possible digital currency ban in the country by three members of parliament. Where the questions clearly pointed to China's ban on domestic trading platforms, and South Korea's similar attitude to domestic markets. One question was, "Is there any action ... to consider prohibiting the circulation of the currency of the Betquin or other digital currencies?".
In this context, the Deputy Prime Minister of Singapore explained that digital currencies are an experiment, noting that their numbers have grown globally and are now in the making. Claiming that the time is still "too early" to say that digital currencies will succeed. The minister, who oversees the Singapore central bank, suggested that "the full impact" of digital currencies will take time to realize whether or not they will succeed in society.
More clearly, however, there was an extraordinary statement made by the Deputy Prime Minister in response to questions about a similar ban made by China:
"The Monetary Authority of Singapore (MAS) has been studying these developments and the potential risks they pose. So far, there is no strong argument to ban digital currency trading here. But we will be the intermediaries in this area of our anti-money laundering systems "
Such statements are similar to those expressed by the managing director of the Singapore central bank "MAS" Rafi Menon, last year. The head of the central bank said at the time that the Betquin itself did not pose any risk requiring regulation, instead referring to the organization of intermediaries such as trading platform operators who had to comply with anti-money laundering and counterterrorism financing laws. The Deputy Prime Minister in his remarks yesterday, saying:
"There are two main uses of digital currencies today. The first is as a means of payment. The second, which has become more prominent before, is where digital currencies are inherent in themselves. People are trading in the hope of making profits "
In addition, the official went on to unveil ongoing efforts to regulate the digital currency platforms, which will place digital currencies such as the Betquin under one regulatory law for retail payment services, as well as general warnings about the risks of investing in digital currency. "The recent drop in prices in the past few weeks illustrates these risks," the deputy prime minister said yesterday.
However, the Singaporean official stressed that state authorities would adopt a cautious approach to digital currency delivery. "We will continue to encourage experiments in the field of plucin, which may involve the use of digital currencies, because some of these innovations may become economically and socially beneficial," he said. But at the same time, we will remain vigilant about new risks. "