To sign up for our daily email newsletter, CLICK HERE
The importance of using cryptocurrency in everyday life is rising every day. As the most popular cryptocurrency, a large number of people are interested in bitcoin investment. People are using these digital currencies in transactions of all forms, in transfers, and for investment purposes as well. With these changes, the policies for cryptocurrency in the countries are changing.
Some countries are banning the usage of digital currencies. While some others are becoming more liberal and allowing companies to accept payments in the form of cryptocurrencies. The Philippine central bank’s governor is making some changes in their policy for crypto. And, the authorities shared the changes in the regulations.
The Views Of The Governor On Cryptocurrencies
With the changes in the policies for cryptocurrencies, the views of the central bank’s governor are something in between. Felipe Medalla, who is the present central bank governor of the Philippines, shares his views on the policies.
He says that he does not want to ban cryptocurrency. But, advise the investors to invest the amount that they can lose. Investors should remain away from spending excessive amounts in the cryptocurrency market. He shared his opinion on the policy changes in a recent interview conducted by Forkast.
The team of Forkast asked Felipe about his stand on cryptocurrencies. He shares his views on the aspect that he does not want it to get banned. But, he does not support its usage as well. He further explains that digital currencies have minimal use in real-life payment options.
Further Statements On Cryptocurrencies
Felipe emphasizes the fact that the prices of cryptocurrencies are very volatile. And he says that currencies should not have much volatility. So, he adds that people should call it crypto assets rather than cryptocurrency.
Along with these, he adds that these digital currencies have a high impact on the environment. The miners are using electricity in much higher amounts, more than even some countries taken together, according to him. This aspect is leading to much higher environmental degradation.
He also believes in the fact that cryptocurrency is a substitute for the government. In many countries, there prevails high economic and financial repression. Cryptocurrencies can prove themselves helpful in evading the monitoring system of the government as well. He emphasizes the fact that we need to focus and find out what are the good points of cryptocurrency for society.
But there are nations where a government is imperfect, but has a huge contribution to social good. In such nations, cryptocurrencies should have a minimum intervention. Because it can weaken the system of governance in the nation. He opines that, due to all these factors, crypto may have a very high valuation in the market.
The Governor’s Views On Cryptocurrencies Downfall
Along with the other aspects, Felipe also provides his opinion on the downfall of digital currencies. He says that the bubble is collapsing already. In such a short duration, many crypto assets are falling. And, these assets are losing their values by two-thirds in this small period. In this matter, he suggests that investors put the amount in investment that they can lose.
In the context of their new policy changes, Felipe says that cryptocurrency should not be a means to evade anti-money laundering. And, the customers should properly know their rules.
The central bank will enforce all the rules for the crypto exchanges as well. The bank will look after and enforce such rules which will help in preventing money laundering like financing criminal activities.
The central bank of this nation is taking a strong stand to protect the economy against volatility. In the Philippines, the cryptocurrency market has to face tough regulations from the government. All of these are because the crypto market is full of volatility and can help in financing criminal activities. To reduce these things, the government is imposing strict rules on this market.
But, you can invest in cryptocurrencies in smaller amounts which you are capable of losing.