Cryptocurrency investors who speculate in market prices could adversely affect the growing technology, according to an executive at Singapore’s central bank.
Speaking to CNBC, Sopnendu Mohanty, chief fintech officer of the Monetary Authority of Singapore (MAS), said that he didn’t want to see speculative investing ‘destroy the experimental value of cryptocurrency.’
According to Mohanty, the experimental value is a key component to finding a use case in the long run. He added, though, that:
The speculators and the people who are making money out of this speculation of the cryptocurrency (market) are perhaps negatively impacting the whole experimentation of cryptocurrency.
It is this concern with speculative trading that has seen several countries taking a firmer stand against cryptocurrencies. China was the first – with new reports suggesting that it is ramping up its efforts of eradicating digital currency trading, including those on foreign platforms – followed by South Korea.
Rumours and speculation are now suggesting that India may also ban the ‘use of these crypto-assets in financing illegitimate activities or as part of the payment system,’ according to India’s finance minister Arun Jaitley. As a result, market prices have been impacted with the beginning of 2018 proving a tough start for the crypto market. Prices seem to be rallying back, however, with bitcoin valued at under $8,800. Considering it was trading just over $6,000 last week, this uptick in price could indicate that regulatory fears are subsiding.
MAS is one central bank that is actively experimenting with its own blockchain, called Project Ubin. It’s hoping to complete a trial with a digital currency version of the Singaporean dollar this year. According to the central bank, the project is aiming ‘to help MAS and the industry better understand the technology and the potential benefits it may bring through practical experimentation.’
In an announcement, MAS said:
DLT has shown potential in making financial transactions and processes more transparent, resilient and at lower cost.
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