Incoming BSP Governor Dismisses Crypto, Not Keen in Regulating

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The next governor of the Bangko Sentral ng Pilipinas (BSP), Felipe Medalla, expressed that he is not keen on regulating crypto and dismissed it as based on the “greater fool theory.”

“Every Bitcoin buyer that I know does not use (cryptocurrency) for anything… The only reason you’re using this is you think somebody else will buy it from you at a higher price. That’s a very scary investment.”

Felipe Medalla, Incoming BSP Governor

This Greater Fool theory notes that a person can make money buying overpriced items if there is a “greater fool” who wants to purchase them at an even higher price.

Billionaire Bill Gates, who’s always been critical of digital assets, also had the same sentiment and pointed out that cryptocurrency and non-fungible tokens (NFT) are shams “based on the greater fool theory”. In a different event, he disclosed that cryptocurrency isn’t “adding to society”. (Read more: Bill Gates: Crypto Doesn’t ‘have Valuable Output,’ Isn’t ‘Adding To Society’)

Further, Medalla added that cryptocurrency is valuable for those who want to hide their money from the government.

“This is a new tool that adds to the ability to do that. There are plenty of people who want to hide their money from the government.” 

Felipe Medalla, Incoming BSP Governor

Last week, Infrawatch PH, a research policy group, urged BSP to suspend and ban the global crypto exchange Binance because it operated illegally in the country. Binance said it is open to discussions.

Currently, cryptocurrency itself is not regulated by the central bank but entities facilitating it are monitored and regulated as Virtual Asset Service Providers (VASP). (Read more: PDAX Explains the Benefits of Transacting With a BSP-Licensed Exchange)

“My view is the moment you cross from the virtual world to the fiat and physical world, you have to have KYC (Know Your Customer) policies… and apply the same anti-money laundering policy.” 

Felipe Medalla, Incoming BSP Governor

Despite these crypto remarks, he pledged that the BSP will remain data-driven under his leadership.

“So, as the first order of business, we will be evaluating relevant data from the BSP units to make sure that we continue what my predecessors have successfully implemented in ensuring price and financial stability and efficient functioning of our payments and settlements system,” he assured.

Last month, BSP Governor Benjamin Diokno stated that the central bank is in talks and currently onboarding several banks and financial institutions for the pilot testing of the central bank digital currency (CBDC) by the last quarter of the year. The launch of the CBDC was announced last March. According to the central bank, it will pursue the pilot project of a wholesale CBDC as part of its aim to promote the stability of the country’s payment system. (Read more: BSP CBDC Digital Currency Initiative Scheduled for Q4 2022)

This article is published on BitPinas: Incoming BSP Governor Dismisses Crypto, Not Keen in Regulating

Photo from UP, Source 1, 2

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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