Bitcoin with caution says Singapore which is nurturing blockchain!December 20, 2017
The Monetary Authority of Singapore (MAS) said in an official statement on Tuesday it is “concerned that members of the public may be attracted to invest in cryptocurrencies, such as bitcoin, due to the recent escalation in their prices”.
Singapore, which is gearing up for its own cryptocurrency, exploring with Blockchain under the ‘Project Ubin’ believes Bitcoin is driven by speculation due to the risk of a sharp reduction in prices, which is high.
“MAS considers the recent surge in the prices of cryptocurrencies to be driven by speculation,” the central bank said in a statement. “The risk of a sharp reduction in prices is high. Investors in cryptocurrencies should be aware that they run the risk of losing all their capital.”
It urged the public to act with “extreme caution”.
Hong Kong and Singapore have agreed to cooperate on a cross-border trade project based on blockchain technology as part of a broader joint strategy on financial technology.