Cryptocurrencies remain a controversial investment. There are just too many narratives fighting out to be the dominant voice.
Singapore has a stance too. DPM Heng has mentioned the merits of the blockchain technology while the Monetary Authority of Singapore (MAS) has repeatedly warned that cryptocurrencies aren’t suitable investments for retail investors.
MAS has also highlighted that more rules may come to regulate crypto investments.
Piyush Gupta was recently interviewed on Straits Times where he shared his views about crypto.
His views echoed the Singapore government’s stance. Sometimes I just feel that it is about getting a handful of key leaders to perpetuate a particular narrative. This time it felt the same too. Out of the sudden we have the CEO of DBS Bank talk about crypto. Why now? Why not earlier? Why not other topics?
Nevertheless, let’s hear some of his views.
He shared that the blockchain technology has immense potential. It can run the back offices of the world or replace any central keeping entities.
He differentiated crypto between private and public currencies. The latter is issued by central banks while the former is by non-government related entities.
At best, he views private currencies as a store of value because of the volatility and the lack of trust to serve as a medium of exchange.
He is a supporter of Central Bank Digital Currency (CBDC) and he believes the nature of money would evolve to blockchain eventually.
If you haven’t get it yet, here’s the Singapore’s Crypto Narrative:
The central banks should be the ones to create cryptocurrencies just like fiat money. It should be centralised and not decentralised. The nature of money changes but the role of the central bank remains. There must be control. Privately issued cryptocurrencies are not trustworthy, volatile and not suitable for retail investors.
I won’t be surprised to hear more of the same narrative being said by different leaders in the future.
What we can expect from here: A digital SGD is likely to happen and we will be using that instead of notes and coins. In fact, we are increasingly using cashless transactions over the years. We won’t feel the difference, the change is in the backend.
Those working in the back office or main roles are in record keeping should start to look for a new career.
