The Governor of the Central Bank of the Philippines has shared his policy on regulating cryptocurrencies. “I don’t want it to be banned,” he said, advising investors not to invest money they cannot afford to lose in cryptocurrency.
Governor of the Central Bank of the Philippines on the regulation of cryptocurrency
Philip Medala, Governor of Bangko Sentral ng Pilipinas (BSP), the country’s central bank, shared his policy on cryptocurrency in an interview With Forkast, published on Friday.
Medalla was asked: “What do you think of cryptocurrency?” to reply:
I don’t want to ban it, but I don’t want to call it cryptocurrency.
The central bank governor explained that, in his opinion, the use of cryptocurrency “has very little actual payment, especially when the price is very volatile.” Emphasizing that the currency cannot be highly volatile, he suggested calling it a “crypto asset.”
Medala then criticized the impact of bitcoin on the environment, stating that the cryptocurrency is “harmful to the environment because the amount of electricity used by miners is greater than the electricity consumption in some countries.”
However, crypto is a “good thing” because it is an “alternative to government” in countries “that suffer from a lot of financial and economic repression,” he admitted. “The other thing that benefits him is the evasion of censorship by the government,” the central bank governor noted, adding: “The question is what social benefit does that bring?”
Medala emphasized that “in most countries where government is not perfect but contributes greatly to the common good, you do not necessarily want to weaken the government”:
So my point is that it might be rated too high because of all the things you’ve said.
The Governor of the Central Bank of the Philippines proceeded to talk about the slump in the cryptocurrency market. It has already happened that the bubble has collapsed. right? Some crypto assets have fallen by nearly two-thirds in a very short period of time.”
So my advice is always if you go to buy this, don’t put money you can’t afford to lose.
Regarding the crypto policy of the Central Bank of the Philippines, Medala emphasized: “Our policy view is that it should not be used to evade anti-money laundering and to know the rules of your customers.”
He concluded that for exchanges, “where they exchange crypto-assets for bank deposits or physical currency,” the central bank’s policy is to impose “all necessary rules to prevent money laundering, especially for the financing of crimes.”
What do you think of the statements of the Governor of the Central Bank of the Philippines? Let us know in the comments section below.
photo credits: Shutterstock, Pixabay, Wiki Commons, Liv Radin
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