Singapore’s central bank has stated that digital currencies have a future in the financial system but are only carefully regulated. However, the regulator also recognized the potential significance of regulated stablecoins in facilitating cross-border money transfers.
The digital currency sector’s primary focus has shifted to regulation, with regulators worldwide hurrying to put regulations in place to oversee the business. Recently, three leading U.S. authorities detailed their digital currency policies; Australia proposed new legislation governing exchanges, DeFi, and DAOs; Ukraine legalized digital assets, and the Bank of England’s governor described regulating the industry as a matter of urgency.
According to the chairman of the Monetary Authority of Singapore (MAS), Singapore is maintaining an open mind towards digital currencies. However, Tharman Shanmugaratnam, chairman of the MAS, stated at the Asia Financial Markets Forum that digital assets must go beyond speculation to play a role in the economy.
“There may be a role for crypto in future finance that extends beyond pure speculation and illicit finance,” Tharman said.
Tharman has been a Member of Parliament since 2001 and the Coordinating Minister for Social Policies since 2015. He is one of Singapore‘s most powerful individuals. Since 2011, he has also served as the chair of MAS.
The Singaporean government, according to Tharman, is keeping an open mind towards digital currencies because it wants the country to innovate.
He also talked about stablecoins, which are a hot topic among regulators all around the world. He admitted that they had the potential to be important in the economy but must be controlled.