Singapore Central Bank Wants To Promote Digital Assets While Limiting Crypto Speculation

Ravi Menon, the head of the Monetary Authority of Singapore, maintains that this approach is “synergistic” and that the difficulties in the crypto realm are caused by price speculation.

According to Ravi Menon, managing director of the Monetary Authority of Singapore, Singapore’s central bank intends to encourage the development of a digital asset ecosystem while limiting cryptocurrency speculation (MAS).

Menon maintained during his opening remarks at a Green Shoots Seminar on Monday that this position is not in conflict with anything else. The financial services industry is introduced to new announcements, products, and policies through Green Shoots workshops.

After a number of well-known crypto firms with connections to Singapore, like Three Arrows Capital and Vauld, crashed earlier this year, the MAS and other regulators in the nation have begun cracking down on the local crypto market with increased determination.

Singapore is working to improve safeguards for domestic retail crypto investors

Menon reiterated in his Monday speech that the MAS is working to improve safeguards for domestic retail cryptocurrency investors.

Menon asserts that cryptocurrencies are simply “heavily speculated upon” and that their prices “have nothing to do with any underlying economic value,” despite the fact that the digital asset ecosystem uses blockchain, distributed ledger technology, and tokenization to enable “anything of value to be represented in digital form, and to be stored and exchanged on a ledger that keeps an immutable record of all transactions.”

“Cryptocurrencies have taken a life of their own outside of the distributed ledger and this is the source of the crypto world’s problems” Menon said.

Instead, the MAS is actively encouraging the ecosystem of digital assets, which includes the tokenization of tangible assets like real estate and artwork as well as intangible ones like carbon credits and computing power.

“I hope this presentation has made clear that MAS’ facilitative posture on digital asset activities and restrictive stance on cryptocurrency speculation are not contradictory. It is in fact a synergistic and holistic approach to develop Singapore as an innovative and responsible global digital asset hub” Menon said.

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