By John Geddie
SINGAPORE (Reuters)

Just a street away from Singapore’s central bank, a cryptocurrency firm has set up what it claims is the first cafe in the city-state to be owned and operated by a business promoting its own digital coin

The downtown pitstop, which launched on Thursday, sells “hand brew” coffee, sandwiches and eco-friendly beauty products and accepts bitcoin, its own virtual currency called Ducatus and other cashless payments.

 

Ducatus cafe operations manager Frances Sy introduces a Bitcoin ATM at the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore
Ducatus cafe operations manager Frances Sy introduces a Bitcoin ATM at the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore December 21, 2017. REUTERS/Edgar Su

 

Its push to promote the use of its own currency through commercial enterprise, rather than speculative investment, comes the same week the Monetary Authority of Singapore urged investors to exercise “extreme caution” toward the cryptocurrency market, which many feel is in a bubble.

 

Ducatus CEO Ronny Tome makes a deposit at a bitcoin ATM during the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore
Ducatus CEO Ronny Tome makes a deposit at a bitcoin ATM during the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore December 21, 2017. REUTERS/Edgar Su

 

“We just want to make sure people understand that cryptocurrencies are here to stay,” Ducatus CEO Ronny Tome told Reuters, adding he had plans to open more cafes in other countries and team up with hotels and travel agencies.

“The way technology develops and grows right now, there is no doubt about that. Developments are rapid and the governments maybe have a little bit of an issue to follow through.”

 

 

Tome said he welcomed Singapore’s efforts to educate people about cryptocurrencies, including warnings against speculative behavior, but did not think it would impact his business.

The booming global interest in cryptocurrencies means Singapore – which has positioned itself as a hub for financial technology in Asia – has to walk a fine line between encouraging technological innovation and reducing financial system risk within its borders.

 

Ducatus CEO Ronny Tome (2nd R) opens their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore
Ducatus CEO Ronny Tome (2nd R) opens their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore December 21, 2017. REUTERS/Edgar Su

 

While the central bank worries about potential losses for its citizens and money laundering through cryptocurrencies, it is carrying out extensive research into the blockchain distributed ledger technology that underlies bitcoin.

 

Frances Sy pays for her coffee with cryptocurrency at the opening of Ducatus cafe, the first cashless cafe that accepts cryptocurrencies such as Bitcoin, in Singapore
Frances Sy pays for her coffee with cryptocurrency at the opening of Ducatus cafe, the first cashless cafe that accepts cryptocurrencies such as Bitcoin, in Singapore December 21, 2017. REUTERS/Edgar Su

 

Anson Zeall, who heads a local association of cryptocurrency firms in Singapore, said that while the country promotes itself as an easy place to do business for fintechs, banks have been shutting down accounts of some cryptocurrency firms and exchanges in recent years.

Singapore’s concerns echo those expressed by regulators in other jurisdictions such as Australia and South Korea.

 

Ducatus franchise manager Philip Lim shows how he makes a deposit at a Bitcoin ATM during the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore
Ducatus franchise manager Philip Lim shows how he makes a deposit at a Bitcoin ATM during the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore December 21, 2017. REUTERS/Edgar Su

 

Deloitte’s head of financial crime for Asia Pacific, Tim Phillipps, expects policymakers’ warnings will only increase as the virtual currency investment community broadens.

“The regulators generally around the world are worried about less sophisticated investors getting drawn in to what is a pretty murky and dark market,” said Phillipps.

 

(Editing by Sam Holmes)

 

Ducatus franchise manager Philip Lim shows how he makes a deposit at a Bitcoin ATM during the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore
Ducatus franchise manager Philip Lim shows how he makes a deposit at a Bitcoin ATM during the opening of their cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore December 21, 2017. REUTERS/Edgar Su

 

Ducatus franchise manager Philip Lim shows how a deposit is made at a Bitcoin ATM at the opening of their first cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore
Ducatus franchise manager Philip Lim shows how a deposit is made at a Bitcoin ATM at the opening of their first cashless cafe that accepts cryptocurrencies such as Bitcoin in Singapore December 21, 2017. REUTERS/Edgar Su

 

A view of Ducatus cafe, the first cashless cafe that accepts cryptocurrencies such as Bitcoin, on their opening day in Singapore
A view of Ducatus cafe, the first cashless cafe that accepts cryptocurrencies such as Bitcoin, on their opening day in Singapore December 21, 2017. REUTERS/Edgar Su

 

A close-up view of a Bitcoin ATM is pictured at the opening of the Ducatus cafe, a cashless cafe that accepts cryptocurrencies such as Bitcoin, in Singapore
A close-up view of a Bitcoin ATM is pictured at the opening of the Ducatus cafe, a cashless cafe that accepts cryptocurrencies such as Bitcoin, in Singapore December 21, 2017. REUTERS/Edgar Su