BNM deputy governor thinks Bitcoin is a bubble

KUALA LUMPUR: Bank Negara Malaysia deputy governor Abdul Rasheed Ghaffour sees the recent spike in bitcoin price as a bubble.
"If you look at the price, it is clear that it is a bubble. If you look at other investments, I don't think you can have so high returns.
"It's (the returns) really akin to the financial scams. Anything high returns will have high risks," he said at a media briefing on "Making Digital Currencies Transparent in Malaysia" today.
Bitcoin price has risen over 1800% year to date. As at 12pm today, it traded at US$17,220.
Stressing that digital currencies are not legal tender in Malaysia, Abdul Rasheed said it is too early to comment whether digital currencies will be recognised and regulated in the future.
"We need additional information to determine whether regulation is necessary."
He expects the reporting obligations on the digital currency exchangers will come into effect early next year after obtaining the government gazette order.
Abdul Rasheed also noted that the regulators do not have intention to ban digital currency trading as it is part of the market "innovation and creativity".
"What is important is we need to balance this between public interest and the integrity of the financial system. We need to take a careful approach and considerations on this."