The Chairman of the Singapore Monetary Authority Sees a ‘Useful Role’ for Crypto and Stablecoins
The head of Singapore’s Monetary Authority said that cryptocurrency has a role in the country’s financial industry beyond simply a trading asset. Singapore has ramped up its crypto-long game over the past year. Additionally, recent statements from the country’s central bank chief underscore the digital currency’s potential importance.
Regulation, according to Tharman Shanmugaratnam, head of the Singapore Monetary Authority, would bolster that function. “Cryptocurrency may have a function in future finance that goes beyond sheer speculation and criminal financing,” Shanmugaratnam said.
Additionally, he discussed the integration of stablecoins into established payment systems. “I believe that regulated stable coins will play an important role in the future. A conventional payment system that innovates and becomes more interoperable across borders for low-cost, rapid, and immediate payments will be a significant element of that sector, as will a role for other independent entrepreneurs,” the chairman said in a Bloomberg interview.
Additionally, Shanmugaratnam said that the central bank is “open-minded” about cryptocurrencies. While the chairman is enthusiastic about long-term cryptocurrency integration, he favors a fintech-based strategy. Additionally, he said that he does not envision cryptos supplanting currency as legal money due to their volatility.
“If you have a very volatile instrument, it will never become money,” he said. “It will be a speculative asset for both the prudent and the imprudent.”
Singapore portrays itself as a welcome new Asian center in the face of severe crypto crackdowns in China, a longtime hub for crypto-centric enterprises and mining activities.
A series of recent stories indicate that Singapore’s officials, as well as its population, are enthusiastic about cryptocurrency. According to a poll by Independent Reserve, 43% of Singaporeans questioned possess cryptocurrency. Additionally, 93% are familiar with cryptocurrency.
Additionally, individuals that own crypto invest at least 5% of their whole investment portfolio in digital assets. Singapore’s position in the area will only grow if important regulatory leaders make cryptocurrency-related pronouncements.