October 28, 2021

Central Bank of Singapore Excited About Stablecoins Benefits, But…

 A recent statement by Singapore’s central bank chairman Tharman Shanmugaratnam showed they strongly welcomed the presence of cryptocurrencies into the country’s financial sector.

In yesterday's Asia Financial Markets Forum program, Shanmugaratnam explained that the case of the use of financial technology could be further developed to limit the skepticism of "speculation" and "illegal finance".

The figure also focuses on stablecoins because of its reliance on the asset cluster in the traditional financial system, as well as its substantial benefits to the economy.

But it still needs clear legislation to prevent financial criminal activity:

“In the future when stablecoins are already legalized, it will play an important role in traditional payment systems. In fact, it has become easier for cross -border payments at fast and cheap transaction rates. ”

This is reminiscent of the decision of Federal Reserve chairman Jerome Powell who did not plan to block cryptocurrencies but at the same time was concerned about the influence of stablecoins.

The central bank of Singapore admits they chose to be open -minded towards the cryptocurrency sector, in line with technological innovation.

Probably because of that, Shanmugaratnam is seen avoiding the use of the name "crypto" or "cryptocurrency". Instead refer to the asset as "fintech".