Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
According to the executive of the MORE, the present volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. make them ineffective instruments for this purpose, which is the opposite of what happens with the CBDC and stablecoins issued by regulated regulation is when something is controlled by a specific set of rules. companies.
- Director of the MAS points out that cryptocurrencies such as Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. do not work as money
- Emphasizes that this is best done by stablecoins and CBDC
- Revealed that Singapore has no plans to issue a CBIDC
- However, they are preparing the infrastructure to launch in case the situation changes.
The managing director of the Monetary Authority of Singapore (MAS), Ravi Menon, noted that digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies and assets could be a permanent fixture within the financial landscape, though he doesn’t believe decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. cryptoassets like Bitcoin work well as money today.
Menon’s statements came to place in an opinion article published by the International Monetary Fund (IMF) where the director of the MAS pointed out that digital assets, especially stablecoins and cryptocurrencies issued by central banks (CBDC) will be able to coexist with the current financial system, even becoming a permanent feature that will be part of it.
In this regard, Menon wrote:
“Traditional fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currencies will continue to dominate, but securely backed private stablecoins and wholesale CBDCs can be expected to play an important role in cross-border payment and settlements.”
According to him, the coins issued by central banks would be intended for use among people, becoming a component that is part of monetary policy, with the same properties of paper money today, only taking the use case to a digital format. He also assured that as long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. as people have confidence that their capital capital is most commonly defined as the large sum of money you would use to invest. is safe there will not be any problems.
Traditional cryptocurrencies fail as money
Taking up the idea behind traditional cryptocurrencies, Menon reiterated that they fail to function as money, explaining:
“These cryptocurrencies perform poorly as a medium of exchange, as a store of value, and as a unit of account…many cryptocurrencies are really utility tokens that represent a stake in Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. projects.”
While the price of many of the popularly known digital currencies fluctuates according to market an area or arena, online or offline, in which commercial dealings are conducted. dynamics, for Menon this is a bad indicator if one expects to compare these assets as money, as this makes them more expensive to buy and sell. “divorced from any underlying economic value in the Blockchain sector.” . Therefore, it does not recommend that they be classified as investment assets, precisely because of the associated risks.
There are no plans yet for a CBDC en Singapore
Lastly, in view of the possibility that Singapore might issue a CBDC, Menon stressed that the agency does not believe it is convenient at this time, just because the payment systems and the level of financial inclusion that they manage at the moment work very favorably.
While a CBDC the company’s executive, the company’s executive of the MAS stressed that the payment systems they handle are fast, efficient and have no cost. Therefore, thinking about a cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. of their own would entail expenses that are not necessary at the moment.
However, the country’s authorities are not closed to the possibility of a CBDC, so they are building the infrastructure necessary for a central bank-issued cryptocurrency to work, should current conditions change.
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Article by Angel Di Matteo / DiarioBitcoin
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