Why Bitcoin is not a good idea as financial instrument for Pension Fund - in response to independent opposition Jeremy Tan.

 14 Jun 2025

1. Bitcoin in a "wild wild west" (programming code) - not under the control of any Central Bank in the Worldd - hence subject to risk of defund, unrecognise, no support, default, disown. (Unlike CPF is guaranteed by Singapore Government).

2. Bitcoin is a haven for money lauderers, tax evaders, illegal hoaders, criminal finance heaven.

3. Bitcoin can be hack and can be stolen online.

i. Exchange hacks: Hackers target cryptocurrency exchanges, gaining access to users' wallets and private keys.

ii. Phishing attacks: Scammers trick users into revealing their login credentials or private keys through fake websites or emails.

iii. Wallet vulnerabilities: Hackers exploit weaknesses in wallet software or apps to gain unauthorized access.

iv. Private key theft: If a user's private key is compromised, hackers can access and control their Bitcoin.

(Note:- Rouge state hackers have stolen Bitcoin in big amount - and no way to recover).

4. Jeremy Tan request for regulatory changes to support Bitcoin - indicate that Bitcoin is not a safe financial instrument for pension fund.

Introspect, as Bitcoin is created in the wild - not created by Singapore MAS Central Bank - how does regulatory changes to support Bitcoin - help to ensure investment in Bitcoin is safe (short of using taxpayers' money to support it or compensate any loss in Bitcoin? --- This is what Jeremy Tan actual intention is.)

5. No Central Banks in the World - support and guarantee Bitcoin (and in fact warn that Bitcoin is not suitable for retail investors to their citizens due to its inherent high risk).

Instead many Cental Banks have developed their own cryptocurrency using Blockchain and tie up their cryptocurrencies with different Countries to faciliate cross payment. Singapore cryptocurrency is Project Ubin.

6. Though our Sovereign Funds invest in some cryptocurrency exchanges and traders and MAS issue licenses to some crypto exchanges - MAS messages is very clear. The risk is high.

Retail cryptocurrency investment is discouraged.

7. If mining Bitcoin can make people rich and no worries about inflation, why Countries all over the world especially rich and more population - with alot of resources mine Bitcoin, no need to work, and get rich?

Precisely it is not easy and practically not possible to mine Bitcoin for everyone simply:-

a. Bitcoin is limited and finite

b. Need specialised skillsets, knowledge, software and effort

c. Need alot of computing power - CPU, power/energy, water, DC resources

Jeremy Bitcoin idea is for his own effort to enrich himself - and cannot be roll out as government policies to enrich everyone - because it is not practical and enforceable.

Else the whole World will already have done it.

Even if Singapore can mine all the finite Bitcoin - but no one in the World honour it, it becomes worthless (because it is just a programming code). If there is demand, there is value. If no demand, the value is 0.

8. Once firmly in the realm of science fiction, quantum computers have become so advanced that they could plausibly rip through Bitcoin’s cryptography within five years or less. 

Government agencies like the US National Institute of Standards and Technology and the National Security Agency are aiming to fully transition to quantum-secure standards by 2030. Yet the Bitcoin community appears confined to theoretical solutions, like BIP-360 (Pay-to-Quantum-Resistant-Hash) or commit-delay-reveal schemes. 

The time for theorizing is over. If concrete steps to adapt the Bitcoin blockchain aren’t taken now, Bitcoin’s entire $2.2-trillion market cap could go up in smoke. All it would take would be one compromised wallet or botched transaction to erode 16 years of painstakingly built trust.

9. There are no control to the source code, algorithm and keys to Bitcoin as it is invented by a secretive programmer that are not accessible. How can Jeremy Tan want Singapore to take a big risk to pledge their pension fund to a financial instrument that has no guarantee and no one that has control over --- essentially his intention is to force Government to use taxpayer money to guarantee the Bitcoin if Bitcoin suddenly become inaccessible.

10. US currency as part of our reserve is used for trade purpose - back up by production activities, goods and services - guaranteed by US Government. US currency is a recognised global currency in SWIFT used by the World as currency exchange to facilitate trade. Hence Singapore investment in US Treasury Bonds about US$260 billion is about right.

Jeremy Tan try to equate Bitcoin to US$ - which is not comparable - because no Countries in the World use Bitcoin as currency exchange for trade under Government-to-Government agreement.

Bitcoin are only recognised by some companies and individuals as currency to buy goods and services - but not recognised or guarantee by their respective Government.

Hence voters need to be wise - not to fall into the suger-coating of Jeremy election speech to trick voters to trust Bitcoin as our pension funds.

He is putting Singaporeans' life savings at risk - by his misinformed pitch for Bitcoin.