The Governor of the Central Bank of the Philippines has shared his policy on cryptocurrency regulation. “I don’t want it banned,” he said, advising investors not to invest money they can’t afford to lose in crypto.
Governor of the Central Bank of the Philippines on Crypto Regulation
Felipe Medalla, the governor of the 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?” He has answered:
I don’t want it banned, but I don’t want to call it cryptocurrency.
The central bank governor explained that in his view, cryptocurrency “really has very little use for actual payments, especially when the price is so volatile.” Emphasizing that currency cannot be highly volatile, he suggested calling it “crypto assets.”
Medalla went on to slam bitcoin’s environmental impact, stating that the crypto is “bad for the environment because the amount of electricity used by miners is greater than some countries’ electricity consumption.”
Nonetheless, crypto “is good” because “it’s an alternative to government” in countries “with so much financial and economic repression,” he conceded. “The other thing it’s useful for is to escape government scrutiny,” the central banker pointed out, adding, “The question is, what social good does it bring?”
Emphasizing that “in most countries where the government is not perfect but largely contributes to the common good, you don’t necessarily want to weaken the government,” Medalla said:
So I think his valuation may be too high because of everything I said.
The Philippine central banker then talked about the downturn in the crypto market. “It has happened before that the bubble has collapsed. Right? Some of the crypto assets have fallen by almost two-thirds in a very, very short period,” Medalla detailed, adding:
So my advice is always that if you’re going to buy this, don’t put in money that you can’t afford to lose.
Regarding the central bank of the Philippines’ crypto policy, Medalla pointed out, “Our policy view, it should not be used to evade anti-money laundering and know your client’s rules .”
He concluded that for exchanges, “where you exchange crypto assets for bank deposits or physical currency,” it is central bank policy to apply “all rules necessary to prevent money laundering.” , in particular to finance crimes”.
What do you think of the comments of the governor of the central bank of the Philippines? Let us know in the comments section below.
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