Singapore wants to be a crypto hub, but only if it means being a hub for sound and well-regulated tokenised and digital assets with value-adding use cases, according to the Monetary Authority of Singapore (MAS).
This means discouraging retail investment in cryptocurrencies, facilitating stablecoins through regulation, allowing tokenised bank deposits, and experimenting with central bank digital currencies (CBDCs).
The position was shared by MAS Managing Director Ravi Menon who was speaking at the Singapore Fintech Festival, the country’s flagship fintech event that is back as an in-person event after three years.
Menon stressed that while cryptocurrencies have been all the rage, the real value in the crypto industry will come from asset tokenisation, which he likened to the advent of securitisation 50 years ago.
He also noted the examples of Project Ubin+, Project Orchid, and Project Guardian, as well as MAS’ consultation papers proposing regulatory measures for cryptocurrency trading and stablecoins.
Ravi Menon
“The question is often asked: does Singapore want to be a crypto asset hub? If a crypto hub is about experimenting with programmable money and applying digital assets for use cases like atomic settlement, yes we want to be a crypto hub.
If it is about tokenising real and financial assets to increase efficiency and reduce risks in financial transactions, yes we want to be a crypto hub. But if it is about trading and speculating in cryptocurrencies, that is not the kind of crypto hub we want to be,”
said Ravi Menon, Managing Director, MAS.
