MAS Chief Questions Crypto’s Future in the Financial Landscape
The chief of Singapore’s central bank expressed skepticism about the prospects of cryptocurrency in the financial sector.
Ravi Menon, the managing director of the Monetary Authority of Singapore (MAS), highlighted that digital currencies have not met the criteria to be considered viable forms of money.
According to Menon, cryptocurrencies have struggled as mediums of exchange or stores of value, often experiencing volatile price fluctuations that have led to substantial investor losses.
He emphasized that these assets are primarily used for quick gains rather than being a reliable repository for one’s savings.
In a panel discussion, Menon reiterated his belief that crypto assets will eventually fade away, as they don’t serve as a trustworthy investment avenue for individuals’ life savings.
Instead, he foresees the future monetary landscape being shaped by central bank digital currencies (CBDCs), tokenized bank liabilities, and regulated stablecoins.
Menon, set to retire by year-end, outlined MAS’s ongoing efforts in establishing a robust regulatory framework for stablecoins.
However, he mentioned that the legislative amendments necessary for this framework to take effect might take up to a year.
In the meantime, MAS is acknowledging entities whose stablecoins already align with its regulatory standards as an interim measure.