Singapore Central Bank hopes crypto tech could will survive crash

Ravi Menon, who is the chief of the Singapore’s de facto central bank, expressed hope on Monday that technologies underpinning cryptocurrencies and the blockchain would survive a crash in the former, news agency Reuters reported.

The Managing Director of the Monetary Authority of Singapore (MAS) said at a UBS Wealth Insights event that he hoped an eventual crash in cryptocurrencies will not undermine the much deeper, and more meaningful technology associated with them.

Menon added that he would not rule out the possibility of the MAS issuing a cryptocurrency directly to the public but that he was not sure it was a good idea.
In late December, the MAS released a public warning to investors about the risks involved in digital currency trading. “MAS considers the recent surge in the prices of cryptocurrencies to be driven by speculation. The risk of a sharp reduction in prices is high. Investors in cryptocurrencies should be aware that they run the risk of losing all their capital,” the regulator said in a press release.

Ravi’s statement also came a few days after Warren Buffett, also known as the “Oracle of Omaha” because his investment picks and market commentaries are closely followed by the financial community – and he lives in Omaha, Nebraska – predicted that cryptocurrencies would not end well.

Buffett said in an interview: “In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending. Now, when it happens or how, or anything else, I don’t know. If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it, but I would never short a dime’s worth.”

In December, Bank of England Governor Mark Carney said that his bank found the distributed ledger technology behind blockchain and bitcoin interesting. The technology could improve transactions between financial institutions, he added.

While Carney was also not enthusiastic about the central bank issuing a virtual currency, he stressed that the recent jump in the prices of cryptocurrencies did not pose any threat to financial stability.

Last week, South Korean authorities launched a wide ranging probe into the cryptocurrency trading. South Korea is one of the leading markets for digital currencies.

Korean tax authorities raided some crypto exchanges last week over concerns of tax evasion and are exploring legislation to ban trading in cryptocurrencies.