Report say that world’s top central bankers are preparing to join the cryptocurrency bandwagon by issuing their own Central Bank Digital Currency

Ravi Menon, Managing Director of Singapore’s central bank Monetary Authority of Singapore, today expressed hope that new-age technologies like blockchain would not be undermined by an eventual crash in cryptocurrencies, according to a Reuters report.

“I do hope when the fever has gone away, when the crash has happened, it will not undermine the much deeper, and more meaningful technology associated with digital currencies and blockchain,” said Menon at a UBS Wealth Insights event in Singapore.

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While MAS is concerned about potential losses for citizens and money laundering through cryptocurrencies, it is already carrying out extensive research into the distributed ledger technology that underlies bitcoin.

In the meanwhile, the MAS and The Association of Banks in Singapore (ABS) are heading a consortium, which is developing three software prototypes to use blockchain to decentralise inter-bank payments. The goal is to use the systems to integrate liquidity saving mechanisms into the transactions.

As per some report, the world’s top central bankers are finally realising the futility of trying to control cryptocurrencies, and are preparing to join the bandwagon by issuing their own Central Bank Digital Currency (CBDCs). A CBDC is a complex tool whose functionality is still being researched.

Many governments in Asia have cautioned people against investing in cryptocurrencies including India, which recently likened virtual currencies like bitcoins to Ponzi schemes. According to the Ministry of Finance, there is a real and heightened risk of investment bubble of the type seen in Ponzi schemes. This may result in sudden and prolonged crash exposing investors, especially retail consumers, and may lead to loss of their hard-earned money.

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