**Singapore Central Banker Predicts the Fate of Private Cryptocurrencies**
*Menon’s Warning*
Singapore central banker Ravi Menon believes that private cryptocurrencies lacking inherent value will likely fade away in the long run. He made this prediction during a panel discussion hosted by the Hong Kong Monetary Authority and the Bank for International Settlements.
**Menon’s Critique of Private Cryptocurrencies**
During the panel discussion, Menon, who is the Managing Director of the Monetary Authority of Singapore, stated that private digital coins have failed the test of money because they cannot retain value. He emphasized that people do not keep their life savings in these assets. Rather, they buy and sell them to make a quick profit.
**Future Monetary Systems According to Menon**
According to Menon, future monetary systems will revolve around three key components: central bank digital currencies (CBDCs), tokenized commercial bank liabilities, and strictly controlled stablecoins. He envisions stablecoins that are fully backed by high-quality government bonds or cash, enabling innovative applications while maintaining stability, unlike the volatile private cryptocurrencies.
**Reserve Bank of India Deputy Governor’s Perspective**
In contrast, the Deputy Governor of the Reserve Bank of India, M. Rajeshwar Rao, expressed a positive outlook on CBDCs meeting unfulfilled user needs. He emphasized the importance of employing existing tech infrastructure while ensuring privacy and security. Rao also highlighted the RBI’s efforts to expand the functionality of its CBDC pilot for offline payments. In the long term, he suggested considering transitioning from bilateral to multilateral CBDC mechanisms between central banks.
**The Preference for Regulated Digital Currencies**
The discussions underscored central bankers’ preference for regulated digital currencies over privately issued cryptocurrencies in future monetary systems. This indicates a shift in the regulatory stance towards digital currencies.
**Conclusion**
Menon’s warning about the fate of private cryptocurrencies aligns with the growing trend of central banks and regulators favoring controlled and regulated digital currencies over unpredictable and volatile private cryptocurrencies. The future of money, according to these central bankers, seems to be leaning towards stability and government-backed control rather than quick profits and speculation. It remains to be seen how these perspectives will influence the future of the cryptocurrency market.
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