Singapore Regulator Challenges Cryptocurrency's Future Dominance
Date: 2023-11-21 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
Cryptocurrency Criticism: A Skeptical View
Menon's skepticism towards cryptocurrencies aligns with a recurring theme among regulators globally. Critics argue that personal motives might influence such perspectives. Recently, speculation arose that the chair of the U.S. SEC, Gary Gensler, could delay approving Bitcoin spot ETFs due to aspirations for the U.S. Treasury Secretary position. However, Menon's primary goal seems to be safeguarding the dollar's reputation, making the opposition to crypto appear predictable and logical.
Cautionary Considerations: The Singapore Perspective
It's essential to approach these critiques from government officials with caution. Menon's comments, too, raise suspicions. According to him, only four candidates from the realm of innovative assets could potentially serve as digital currencies: private cryptocurrencies, central bank digital currencies (CBDCs), tokenized bank obligations, and regulated stablecoins. Notably, traditional cryptocurrencies don't make the cut in Menon's assessment.
Why Cryptocurrencies Face Criticism
Menon argues that only four contenders from the realm of innovative assets have the potential to become digital currencies: private cryptocurrencies, central bank digital currencies (CBDCs), tokenized bank obligations, and regulated stablecoins. Traditional cryptocurrencies, he believes, don't fit the criteria for digital money.
This perspective aligns with a widespread rhetoric among bankers, officials, and fiat currency enthusiasts. While cryptocurrencies can be volatile and discomforting for new investors, Menon overlooks their potential for substantial returns. For instance, Bitcoin's price has surged nearly 120% since the beginning of the year, outperforming traditional stock indices like Nasdaq and S&P 500. Gold, considered a reliable store of value, only increased by 9% in 2023, significantly less than enthusiasts of decentralization and blockchain gained.
Altcoins and Potential Gains
Investors in altcoins may experience even more impressive returns. Solana (SOL), for example, has seen a 303% increase in price over the past year, with a staggering 137% surge in the last month alone. Thus, alarming the audience about the potential decline of Bitcoin and other cryptocurrencies might not be entirely fair, as the potential for growth should also be considered.
