The brand new governor of the central financial institution of the Philippines, Felipe Medalla, has advised that individuals who spend money on cryptocurrencies like bitcoin adhere to the large idiot concept. He additionally argued that individuals who spend money on cryptocurrencies achieve this as a result of they need to “disguise 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 traders solely purchase the cryptocurrency as a result of they’re satisfied that another person will purchase the identical digital asset at the next worth. In response to Medalla, who spoke at a digital roundtable hosted by native media, such an funding technique is “very scary.”
Additionally as reported in Enterprise World, Medalla believes the worth proposition of cryptocurrencies relies on the so-called Massive Idiot Principle. In accordance Investopedia, the speculation states that costs rise as a result of traders can promote overvalued securities to different traders or “greater fools”. Traders subscribing to this concept are infamous for ignoring valuations, earnings experiences, and all different information.
Utilizing Crypto to Cover Funds
Along with the Larger Idiot Principle claims, which have been additionally just lately raised by Invoice Gates, the brand new BSP Governor mentioned that individuals who select to spend money on cryptocurrency achieve this as a result of digital foreign money offers them the chance to cover their property. He defined:
This can be a new software that provides to the power to take action. There are lots of individuals who need to disguise their cash from the federal government.
Though the BSP doesn’t immediately regulate cryptocurrencies, it has issued pointers that require Digital Asset Service Suppliers (VASPs) to acquire a license from them. Medalla, in the meantime, is quoted in the identical report expressing its approval of the enforcement of know-your-customer (KYC) and anti-money laundering insurance policies on VASPs.
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