BELIEF OF NEW GOVERNOR OF PHILIPPINES CENTRAL BANK FOR CRYPTO IS BASED ON “THE GREATER FOOL THEORY”
Felipe M. Medalla, an economist slated to be the following governor of the Philippines imperative financial institution, isn't always interested in regulating crypto, which he believes is based totally on “the extra idiot theory.”
“The most effective cause you’re using this [cryptocurrencies] is you think anyone else will purchase it from you at a higher fee. That’s a very scary funding,” the destiny vital financial institution leader advised enterprise world.
Cryptocurrencies are based at the extra idiot principle, which shows that a trader can earn profits no matter the shopping for fee if there’s a “greater fool” inclined to shop for it, Medalla stated.
Medalla additionally stated that cryptocurrencies serve as a device for those searching for to “conceal their money from the authorities.”
Bangko Sentral ng Pilipinas (BSP) does now not regulate cryptocurrency itself but has set recommendations for virtual asset service carriers who need a license from the vital bank to operate.
The BSP is presently operating on a pilot wholesale principal financial institution virtual foreign money challenge referred to as CBDCPH, to check the CBDC’s feasibility for big-value transactions between pick out establishments.
In Chainalysis’ Crypto Adoption Index 2021, the Philippines ranked 15th in phrases of virtual asset adoption, even as BSP information indicates that cryptocurrency investments surged 71% to almost US$2 billion within the first half of of 2021.