The incoming governor of the Philippine central financial institution, Felipe Medalla, has recommended that folks that make investments in cryptocurrencies like bitcoin are adherents of the Better Idiot Idea. He additionally argued that folks investing in cryptocurrencies are doing so as a result of they wish to “cover their cash from the federal government.”
A ‘Very Scary’ Funding Technique
The brand new governor of Bangko Sentral ng Pilipinas (BSP), Felipe Medalla, has claimed that bitcoin buyers solely purchase the cryptocurrency as a result of they’re satisfied that another person will purchase the identical digital asset at a better worth. In line with Medalla, who spoke at a digital roundtable dialogue that was organized by a neighborhood media outlet, such an funding technique is “very scary.”
Additionally, as reported in Enterprise World, Medalla believes the worth proposition of cryptocurrencies is predicated on the so-called Better Idiot Idea. In line with Investopedia, the speculation asserts that costs go up as a result of buyers can promote overpriced securities to different buyers or the “higher fools.” Buyers subscribing to this principle are identified to disregard valuations, earnings stories, and all the opposite information.
Utilizing Crypto to Conceal Funds
Along with the Better Idiot Idea claims, which had been additionally just lately raised by Invoice Gates, the incoming BSP governor mentioned people who select to take a position in cryptocurrency accomplish that as a result of the digital forex offers them a capability to cover their holdings. He defined:
This can be a new software that provides to the flexibility to try this. There are many individuals who wish to cover their cash from the federal government.
Whereas the BSP doesn’t instantly regulate cryptocurrencies, it has issued pointers that require digital asset service suppliers (VASPs) to safe a license from it. Medalla, in the meantime, is quoted in the identical report expressing his approval of the applying of know your buyer (KYC) and anti-money laundering insurance policies on VASPs.
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