Singapore Monetary Authority Predicts Crypto Will Disappear From Monetary Stage

Singapore authorities have expressed their views on stablecoins and CBDCs. (Photo; Doc. CoinJournal)

JAKARTA - The Monetary Authority of Singapore (MAS), through its Executive Director, Ravi Menon, firmly expressed his views on the future of the global monetary system. The panel discussion, which was held on November 28, was held by the Monetary Authority of Hong Kong and the Bank for International Settlements.

During the event, the Minister of State emphasized that private cryptocurrencies such as Bitcoin cs will not get a place in the new monetary framework. According to him, this private crypto asset failed to undergo a fundamental test of money due to its inability to maintain value consistently.

In his view, this cryptocurrency is more often used for fast financial gain, not as a long-term savings instrument, making it considered unreliable and unstable to be included in the future monetary framework.

Support Stablecoins And CBDCs

As an alternative, Menon explained his vision about the future of a monetary system consisting of three main elements: central bank digital currency (CBDC), tokenized bank liabilities, and well regulated stablecoins.

In this context, the Menon puts a special emphasis on the potential for stablecoins, especially those fully supported by high-quality government securities or cash. According to him, such stablecoins can function as stable money, providing the necessary stability and reliability in the monetary system.

Menon's statement is in line with Singapore's latest regulatory steps specifically targeting stablecoins. In mid-November 2023, MAS introduced a regulatory framework for one-currency stablecoins, focusing on value stability, capital, and presentation of audit results.

This framework stipulates that only publishers who meet this criterion are entitled to apply for their stablecoins to be recognized as "stablecoins regulated by MAS."

Not only that, but Singapore's financial regulator also plans to pilot central bank digital money or CBDC for a wholesale interbank settlement in 2024 as part of the Orkhid Blueprint. Thus, Singapore continues to strengthen its position as a pioneer of progressive regulations in the face of crypto dynamics and the latest developments in the global financial system.