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BackSingapore has big plans for crypto. So big it’s making news. Singapore is in the crypto spotlight because the country is not trying to create a short-term hype, but has a mature plan to become the world’s first country to fully embrace and integrate crypto into its economy.
FinTech Singapore
The mission of Singapore’s central bank, the Monetary Authority of Singapore (MAS), is to promote sustained non-inflationary economic growth and make Singapore a sound and progressive financial center.
By supporting the fintech industry, the MAS ensures Singapore’s leading position in the global economy that’s growing and evolving fast with the rise of blockchain. Singapore’s central bank is a strong supporter of domestic fintech startups and cryptocurrency exchanges.
The MAS stated, “What we are trying to do is to bring the banks and cryptocurrency fintech startups together to see if there is some understanding they can reach.”
Singapore cryptocurrency regulations
In Singapore, crypto exchanges and trading are legal. This shows a much more friendlier approach to crypto as compared to many other countries, not mentioning Singapore’s closest neighbors.
For example, India’s central bank forced all local regulated financial institutions to cease offering services to crypto companies.
The tax authorities of Singapore even treat Bitcoin as ‘goods’.
Regulatory framework for crypto payment services
In November last year, the MAS finalized a new crypto-oriented regulatory framework for payment service providers in Singapore. Now, the licensed payment service providers legally support certain cryptocurrencies in their services.
Way forward
Singapore cryptocurrency news brought to light that the MAS has been considering the use of a digital version of the Singapore dollar to make interbank payments easier. This is what we know as Project Ubin.
Project Ubin is a collaborative project with the industry to explore the use of Distributed Ledger Technology (DLT) for clearing and settlement of payments and securities. DLT has shown potential in making financial transactions and processes more transparent, resilient and at lower cost. The project aims to help the MAS and the industry better understand the technology and the potential benefits it may bring through practical experimentation. This is with the eventual goal of developing simpler to use and more efficient alternatives to today’s systems based on digital central bank issued tokens.
What’s to learn
By the example of Singapore, policymakers should learn that it’s only through similar experiments and attempts that they can experience the benefits of the new technology. Staying in the shadows in the age of blockchain will not drive innovation forward.
Singapore will definitely be introducing more and more fintech and cryptocurrency projects that will encourage plenty of discussions.
Have a terrific rest of the day!
The CoinMetro Team