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Bitcoin [BTC] and other cryptocurrencies should be called ‘digital tokens’ says MAS’ Ravi Menon

Akash Anand



Bitcoin [BTC] and other cryptocurrencies should be called 'digital tokens' says MAS' Ravi Menon
Source: Unsplash

In a recent interview with Bloomberg, Ravi Menon, managing director at the Monetary Authority of Singapore [MAS], spoke about the present cryptocurrency scenario and also pointed out the different use cases of utility tokens and security tokens.

Menon stated that cryptocurrencies like Bitcoin [BTC] should not be called currencies but should rather be called ‘digital tokens’. He said this as a follow up to the lack of clarity and speculation that is prevalent in the cryptocurrency market right now.

The MAS official went on to say that calling the tokens a currency is wrong because it does not have the qualities of mainstream fiat currency yet. According to Menon, fiat currency’s factors like stable value, accreditation by a centralized authority all make it more valuable than cryptocurrencies. There is a trust factor that is deeply ingrained in fiat currency that is just not present in the digital asset market, he said.

He then went on to differentiate between the two types of digital tokens, that is utility tokens and securities token. Menon stated:

“Utility tokens are imperative to the functioning of the blockchain are used to buy services, namely cloud services. The main difference factor is that utility tokens do not come under the regulatory ambit. Security tokens are issued by companies that raise capital and to provide funding.”

Ravi Menon made it clear that dealing with security tokens is much more tricky because of the regulatory crackdowns. He advised ICO players to be careful while crossing the ‘utility token-security token’ boundary because it will lead to the ICOs suffering the full force of authorities like the Securities and Exchange Commission [SEC].

Ravi Menon was also in the news earlier when he had said that the financial regulator is ready to help cryptocurrency firms which are finding it difficult to set up local bank accounts. Menon said:

“What we are trying to do is to bring the banks and cryptocurrency fintech startups together to see if there is some understanding they can reach.”

To create more jobs and diversify the financial sector, Singapore had opened its economy for the development of the fintech sector. Nevertheless, to be cautious of the new players in the market and to reduce the chances of fraud, the financial regulator had imposed a lot of restrictions, significantly hindering operations of cryptocurrency firms in the country.

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Bitcoin [BTC] is still going to $100,000, claims Heisenberg Capital’s Max Keiser




'Bitcoin is still going to $100,000', says Max Keiser
Source: Unsplash

CNBC’s Crypto Trader Ran NeuNer, spoke to Max Keiser, Co-founder of Heisenberg Capital on the sidelines of the Magical Crypto Conference and discussed Bitcoin’s current trends.

Keiser said that he was bullish on Bitcoin in the long term, adding that he would be sticking by his “$100,000” prediction for Bitcoin. He stated,

“I never stopped make price prediction… I said it [Bitcoin] was going to a hundred thousand dollars and it was only a dollar and I said that all publicly… it is still going to a hundred thousand dollars”

He added that the timing of when Bitcoin would reach the mark was not important, but that it would outperform every other asset over the next 15 years. Additionally, he said that timing was only for people who were waiting to buy crypto at a better price and “that is a bad way to approach crypto.”

Keiser displayed his enthusiasm for crypto, commenting that, “Stack Satoshis… Stack SATs… you should be stacking SATs.” Giving his opinion on Bitcoin’s recent rally, Keiser said,

“I think that it goes back to when Federal Reserve issued a statement saying that they’re moving the policy to permanent quantitative easing… which means money printing without end. As you know Bitcoin is hard money, like gold, and it is going to respond well to hyperinflation and hyper-money printing.”

Further, Keiser claimed that Bitcoin bottomed when the Federal Reserve announced this a few weeks ago and that this was due to a couple of reasons. The first being Bitcoin’s upcoming halving which highlights the scarcity of Bitcoin. According to Keiser, the second reason was that the sellers were exhausted. All the above reasons, in totality, contributed to Bitcoin’s price rise, claimed Keiser.

Since Bitcoin has already proven itself as a store of value, Keiser remarked that it would be best to concentrate on Lightning Network, a layer-two scalability solution for Bitcoin and improve it as a medium of exchange.

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