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Monetary Authority of Singapore: Bitcoin’s fall won’t provoke new 2008

28 January 2018 21:00, UTC

One of the high-ranking members of the Monetary Authority of Singapore management responsible for financial technologies told the local media that his colleagues know exactly what to do and when to intervene when it comes to Bitcoin, as estimating the state of the market and its possible development case scenarios is much easier with a cryptocurrency market still at its infancy than with a wider traditional market which includes many spheres and types of payment. He also rejected the idea that Bitcoin could become a new Lehman Brothers, a company from which, as the society believes, the world economic crisis of 2008 has started.

By “intervene” Sopnendu Mohanty meant implementing consumer protection regulations rather than full prohibition: the authorities of Singapore are much more tolerant towards Bitcoin and other cryptocurrencies than their Chinese counterparts. But in December, Richard Jerram, Chief Economist of that same governmental body, expressed his own views, and he believes that Bitcoin would fall due to the fact it has no intrinsic value and people buy “all sorts of rubbish”.

The Monetary Authority of Singapore has repeatedly issued several statements regarding cryptocurrency investments throughout the past year, in those statements the central bank reminded investors about the volatility of this cryptocurrency and the riskiness of ICO projects.