Categories: Market

Singapore’s CBDC is focused on retail to protect itself from privately issued stablecoins

The Monetary Authority of Singapore (MAS) has stepped up its efforts to research and develop a central bank digital currency (CBDC) for use in the retail sector.

MAS’s CEO Ravi Menon said Singapore’s retail CBDC, which is being developed in partnership with private institutions, will be “the digital equivalent of today’s banknotes and coins.”

At the Singapore FinTech Festival, Menon highlighted the benefits of CBDCs for retail, enabling faster, safer online transactions and building a comprehensive payment ecosystem.

He also believes that building an in-house CBDC for retailers can reduce investment risks when dealing with privately issued stablecoins or overseas CBDCs in Singapore’s payments landscape:

“The digital Singapore dollar issued by MAS, tailored to meet the needs of the digital economy, can help mitigate this risk. However, issuing a retail CBDC is not an easy decision. “

Given the lack of urgency over the need for a retail CBDC, Menon warned that central banks will not be able to provide enough credit if people hold most of their wealth in digital Singapore dollars:

“But we can manage these risks by designing retail CBDCs with appropriate safeguards, such as inventory and traffic restrictions on the amount of digital Singapore dollars that no one can buy. Anyone can book with MAS.”

MAS previously experimented with wholesale CBDCs under the name Project Ubin to identify different use cases in cross-border payments. The initiative envisages the launch of Partior, a blockchain-based interbank clearing and settlement network jointly founded by DBS Bank, JP Morgan and Temasek.

According to Menon, Singapore will enable regulatory sandboxes based on existing frameworks for market testing of low risk activities in a pre-defined environment.

Related: Singapore is positioning itself as a global crypto hub, the regulator says

Just last week, November 2nd, Menon highlighted MAS ‘proactive efforts in implementing “very strong regulation” to reduce the foreseeable threats that come with the adoption of cryptocurrencies. :

“Crypto-based operations are essentially an investment in a potential future, the shape of which is currently unclear.”

In August, the Singapore-based DBS Bank received official approval to introduce a cryptocurrency exchange, the DBS Digital Exchange (DDEx). As Cointelegraph reported, the new license guarantees institutional trading in major cryptocurrencies such as Bitcoin (BTC), Ether (ETH), XRP and Bitcoin Cash (BCH).

.

.

CoinX

Recent Posts

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

3 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

6 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

8 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

9 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

12 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

15 hours ago

This website uses cookies.