Singapore’s Central Bank Sees Good Potential for Stablecoins To Become Widely Used Payment Instrument

The Financial Authority of Singapore (MAS) says stablecoins have the potential to turn out to be a extensively accepted technique of cost.

In an interview with The Enterprise Instances, MAS director Chia Der Jiun says stablecoins have large potential, supplied there are rules in place to forestall the crypto belongings from straying from their pegged worth.

“Stablecoins have options that present better worth stability, with the potential to turn out to be a extensively used cost instrument. MAS sees good potential in stablecoins, supplied they’re nicely regulated and have a excessive diploma of worth stability.

To this finish, MAS has finalized a regulatory strategy for stablecoins, specializing in regulating the worth stability danger of single-coin stablecoins.”

The MAS says it needs to determine a regulatory framework for stablecoins in an effort to guard customers and shoppers.

“We’re engaged on the mandatory legislative adjustments to the PS (Cost Companies) Act to implement the stablecoins framework. Solely stablecoin issuers that meet all the necessities of the framework can apply to have their stablecoins regulated by MAS as ‘MAS-regulated stablecoins’. This enables the market to distinguish these stablecoins from different varieties which are unregulated for his or her worth stability.”

The MAS additionally says that issuing a central financial institution digital forex (CBDC) – a stablecoin pegged to a rustic’s forex, issued by the Reserve Financial institution – will not be at present vital as cashless funds are already environment friendly within the nation .

“MAS has assessed that the case for issuing a Singapore greenback CBDC in Singapore will not be compelling at the moment as digital funds in Singapore are fairly ubiquitous, seamless and environment friendly.”

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Featured picture: Shutterstock/Natalia Siiatovskaia/Tithi Luadthong