The Monetary Authority (MAS) has selected Central Bank Digital Currencies (CBDC), tokenized bank deposits and potentially well-regulated stablecoins as eligible digital asset purchases, exchanges and holdings in Singapore.
The choice is due to the fact that, unlike most cryptocurrencies, these categories of digital assets can potentially be regarded as a payment instrument tied to the real value of fiat currency, commodity or financial security, or even issued by state banks.
A likely scenario for the use of digital assets within the city-state will be developed by MAS in collaboration with the Committee on Payments and Market Infrastructure (CPMI), as well as the Bank for International Settlements (BIS) of Singapore.
The regulator will recruit 11 institutions specializing in asset management, fixed income and foreign exchange to Project Guardian, including banking corporations HSBC, Standard Chartered, DBS and CITI.
The Central Bank of Singapore supported the MAS initiative and agreed on the need to improve existing traditional financial systems through the development of crypto ecosystem tools.
Earlier, MAS Singapore Chairman Tharman Shanmugaratnam questioned the need to regulate the city-state’s crypto industry in the same way as the traditional financial market.
Source: Bits
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