Ravi Menon, managing director of the Monetary Authority of Singapore, has said the recent “bloodbath” in cryptocurrency might end up being a good thing, helping to reset the tables for a more orderly future.
Speaking at the inaugural Point Zero Forum last week in Zurich, a meeting of investors and policymakers, he said the industry was “at a crossroads,” in which the choices they make now would determine the future.
He listed some of the main issues, such as an unprecedented sell-down, the price collapses and bankruptcies for many crypto firms.
But Menon wasn’t speaking out of distress, instead saying this would be a good way to “separate the wheat from the chaff” in the crypto space.
He said many in the industry had “missed the plot” and crypto tokens powering the blockchains had “gotten a mind of their own.”
“[S]peculation in cryptocurrencies, has I think brought great damage,” he said. “The lives of investors who’ve lost their money is one, but the waste of resources is another. So I think we have a great opportunity here in this conference to reset the path, to its actual business transformation.”
Blockchain, he added, could create economic value in many ways, including enhancing financial inclusion, transforming business processes and making payments.
With crypto’s troubles compounding, PYMNTS wrote recently that Michael Hsu, acting chief of the Office of the Comptroller of the Currency (OCC), has solidified his resistance to letting lenders get unrestricted access to the digital asset market.
Hsu said there were some “vulnerabilities and risks” to crypto which warrant a careful approach.
Speaking on a call with reporters, he said the recent OCC Semiannual Risk Perspective had shown digital assets could be dangerous for lenders.
He said earlier guidance from the agency had instructed bankers to get approval from the OCC before getting into more crypto activities.