No strong case to ban cryptocurrency trading as yet, says Singapore

SINGAPORE: The central bank of Singapore has been studying the potential risks posed by cryptocurrencies, but there is as yet no strong case to ban trading of the digital coins in the city-state, Deputy Prime Minister Tharman Shanmugaratnam said.

“Cryptocurrencies are an experiment. The number and different forms of cryptocurrencies is growing internationally. It is too early to say if they will succeed,” he said.

“If some do succeed, their full implications will also not be known for some time,” the deputy prime minister said in a written answer to questions from members of parliament on banning the trading of bitcoin or cryptocurrency.

“The Monetary Authority of Singapore has been closely studying these developments and the potential risks they pose. As of now, there is no strong case to ban cryptocurrency trading here.”

In another development, the head of the Bank for International Settlements (BIS) said central banks must prepare to act against cryptocurrencies to ensure they do not become entrenched and undermine trust in central banks.

Agustin Carstens, general manager of the BIS, said cryptocurrencies such as bitcoin were “probably not sustainable as money” and failed the “basic textbook definition” of being a currency. “There is a strong case for policy intervention,” he said, speaking at Frankfurt’s Goethe University yesterday. – Reuters