The Central Bank of Singapore had been known to be very ‘fintech friendly’ in its dealings. However the bank’s head recently stated that fintech spheres such as Bitcoin are currently passing through a “hype” phase much to the utter bewilderment of cryptocurrency enthusiasts worldwide.
Ravi Menon, the head of Monetary Authority of Singapore (MAS), stated out to Bloomberg on Monday that investors need to take proper precautions while dealing with cryptocurrencies and while transacting over p2p lending platforms. He was quoted as saying, “obviously as with any technological change or innovation, there will be a fair amount of hype built around it – and I think this time is no different; there is excessive hype around some aspects.”
Regulatory and monetary policy of Singapore lays extreme emphasis on Fintech sector with its open support towards emerging trends such as Blockchain and international partnership of the central regulators on knowledge-sharing and education making it to headlines every now and then. The cautionary tone of Menon thus seems to be highly odd at this juncture given that countries spread across the globe are trying to bring regulations in crypto sphere by dealing with them in a strict tone. Various market experts are referring to this current scenario as a second dotcom-style bubble.
Menon pointed out that, “I do see some collapse of the bubble in the fintech space. Some business models, some applications of technology are clearly overstretched. At some point in the current euphoria about fintech, there will be some reckoning of that sort. But I do hope that it does not sweep away everything as it did in 2001, sweep away the good as well as the hype.”
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