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Philippine Central Bank Governor Explains Crypto Policy — ‘I Don’t Want It Banned’

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The Philippine central bank governor has shared his policy regarding the regulation of cryptocurrencies. “I don’t want this to be banned,” he said, advising investors not to invest money they can’t afford to lose in crypto.

The head of the Central Bank of the Philippines on the regulation of cryptocurrencies

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Felipe Medalla, Governor of Bangko Sentral ng Pilipinas (BSP), shared his cryptocurrency policy in interview with Forkast posted on Friday.

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Medalla was asked: “What do you think about cryptocurrency?” He replied:

I don’t want it banned, but I don’t want to call it a cryptocurrency.

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The central bank governor explained that, in his opinion, cryptocurrency “is really very unsuitable for real payments, especially when the price is so volatile.” Emphasizing that the currency cannot be very volatile, he suggested calling it “crypto assets”.

Medalla then criticized bitcoin’s environmental impact, stating that the cryptocurrency is “bad for the environment because the amount of electricity that miners use is more than electricity consumption in some countries.”

However, cryptocurrencies are “good” because “it’s an alternative to government” in countries “with so much financial and economic repression,” he acknowledged. “Another thing it’s good for is evading government control,” the central banker noted, adding, “The question is, what public good does it bring?”

Emphasizing that “in most countries where the government is not perfect but contributes greatly to the common good, you don’t necessarily want to weaken the government”, Medalla opined:

Therefore, I think that his rating may be too high due to all that I have said.

The Central Bank of the Philippines continued talking about the decline in the cryptocurrency market. “The bubble has already burst. Right? Some crypto assets have fallen by almost two-thirds in a very, very short period,” Medalla elaborated:

So my advice is always this: if you’re going to buy this, don’t invest money that you can’t afford to lose.

Regarding the Philippine central bank’s cryptocurrency policy, Medalla emphasized, “Our political view is that it cannot be used to evade AML and know your client’s rules.”

He concluded that for exchanges “where you exchange crypto assets for bank deposits or physical currency”, the policy of the central bank is to comply with “all the rules necessary to prevent money laundering, especially for the financing of crimes.”

What do you think of the Philippine central bank governor’s comments? Let us know in the comments below.

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