The Governor of the Central Bank of the Philippines shared his policies on cryptocurrency regulation. “I don’t want it to be banned,” he said, advising investors not to invest in cryptocurrencies they can’t afford to lose.
Philippine Central Bank Governor Crypto Regulation
The governor of the country’s central bank, Bangko Sentral ng Pilipinas (BSP), Felipe Medalla, shared his policy on cryptocurrencies in a Forkast interview published on Friday.
Medalla was asked, “What do you think about cryptocurrencies?” He replied:
I don’t want it banned, but I don’t want to call it crypto.
The central bank governor explained that, in his view, cryptocurrencies are “very rarely used for real payments, especially when prices are so volatile.” He emphasized that the currency is not very volatile, suggesting that it be called “Crypto Assets”.
Medalla then slammed bitcoin’s environmental impact, saying the cryptocurrency is “harmful to the environment because miners use more electricity than some countries use.”
Still, cryptocurrency “is a good thing” because “it’s an alternative to government,” he conceded, in a country “stricken by so much financial and economic repression.” “Another thing it’s useful for is evading government oversight,” the central banker noted, adding: “The question is what social benefit does this bring?”
Emphasizing that “in a country where most governments are imperfect but largely contribute to the public good, you don’t necessarily have to weaken the government,” Medalla argues:
So my point is that it’s probably overvalued because of all the things I’ve said.
The governor of the Philippine central bank continues to talk about the downturn in the crypto market. “The bubble burst. Right? Some cryptoassets are down almost two-thirds in a very, very short period of time,” Medalla elaborated:
So my advice is always, if you go and buy this, don’t put in money you can’t afford to lose.
Regarding the Philippine central bank’s cryptocurrency policy, Medalla emphasized: “Our policy stance is that it must never be used to evade anti-money laundering and know-your-customer rules.”
He concluded that for exchanges, “where you exchange crypto assets for bank deposits or physical currency,” the central bank’s policy is to enforce “all the rules needed to prevent money laundering, especially the financing of crime.”
What do you think of the remarks by the Governor of the Bank of the Philippines? Let us know in the comments section below.
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