Singapore seems to top the rankings in several crypto surveys, thus establishing itself as a crypto hub. But just how is the Bitcoin situation over here? I write this for @chungkingexpress who asked me this question before as well as @Bitcoin_Bootcamp who spent time researching on the Bitcoin situation in Germany (#396409)
Our narrative: speculative asset
Not just Bitcoin, our central bank, the Monetary Authority of Singapore (MAS), discourages investing in cryptocurrencies in general as they are viewed as speculative assets. Whether it is merely reflecting the sentiments of the general public or actively dissuading Singaporeans from dabbling in crypto to maintain its stronghold on currency depends on you.
I do think that most Singaporeans who buy Bitcoin do so with the expectation that it will pump and yield big bucks in the future. Hence, our discussions have been centred on taking note of Bitcoin’s price volatility and diversification and making sure that we invest 5-10% of our portfolio value in crypto. I have never heard of The Bitcoin Standard - the idea that Bitcoin frees you from all institutional control and empowers you to take ownership of your finances - until I came here. Thank goodness I did.
Because Bitcoin is viewed with skepticism and suspicion, the MAS has come up with a few power moves. Firstly, all BTC ATMs were prohibited. Now I don’t necessarily want to buy my sats from an overpriced machine, but I think that the removal of such ATMs serves to deter my countrymen from getting to know Bitcoin and its benefits. We are a country which bans things deemed harmful to us (like cannabis), so I’m sure other Singaporeans will take their cue as such.
Also, we are not allowed to invest in the recently approved spot Bitcoin ETFs because of their perceived volatility.
Nonetheless, because we are a country which is pragmatic about making money, the MAS does allow banks to offer Bitcoin to their Rich clients. For example, In September 2022, DBS, Singapore’s largest bank allowed about 100,000 of its rich clients with investable assets of at least USD$246k to trade Bitcoin, Bitcoin Cash, Ether and XRP on its Digital Exchange. So, if you have deep pockets, you are more than welcome to tread the treacherous waters of Bitcoin.
Real-world adoption
Do I feel stifled by my country’s interference in our personal investing choices? Here’s the funny thing. Because Singapore positions itself as a crypto hub, things are still moving on the Bitcoin front.
On January 23 this year, a MAS-approved crypto payment firm Triple-A allowed its decision to collaborate with a bills payment platform called AXS. This partnership will allow Singaporeans to pay for a wide range bills, fines, taxes and student fees in Bitcoin! I guess the MAS has done its due diligence and decided that Triple-A won’t collapse and take our money along with it, lol.
I would have never expected this to happen in my lifetime, so honestly I’m floored. It seems that if I’m strategic enough, I could acquire the Bitcoin Standard one day.
On the retail front, some enterprising businesses are accepting Bitcoin as a form of payment. We are represented on the Coinmap. But as you can see from this article (https://chaindebrief.com/buying-with-bitcoin-heres-8-stores-that-accept-cryptocurrency-payments/), most stores that accept Bitcoin are lifestyle and luxury shops that cater to the relatively more affluent Singaporeans. Nothing about your neighbourhood cafe accepting Bit on in exchange for a tiramisu cake. That may be because the Lightning Network has yet to take root here.
It’s my sincere hope that with AXS accepting Bitcoin, more shops and merchants will do likewise. You know, monkey see monkey do.
Will just like to end this that this is my personal take on the Bitcoin situation in my country. Just my lens. Just my two sats’ worth