The Managing Director of Singapore’s central bank, the Monetary Authority of Singapore (MAS), has branded cryptocurrencies as a failure. Instead, he backs Central Bank Digital Currencies (CBDCs) and stablecoins as future financial system components.
Ravi Menon expressed his opinion in his keynote at the Singapore Fintech Festival. Menon stated, “Cryptocurrencies have performed poorly as a medium of exchange or store of value, their prices are subject to sharp speculative swings, and many investors in cryptocurrencies have suffered significant losses.”
The MAS Managing Director views well-regulated stablecoins as a promising digital currency. He also commended the tokenized bank liabilities and CBDCs. Menon named StraitsX’s stablecoin and Paxos Digital’s new USD-pegged stablecoin as examples during his speech.
Menon also highlighted that Singapore, known as a crypto hub, would rather be recognized as a digital assets hub. He emphasized how technology can be utilized beyond crypto speculation, pointing out the tokenization projects for foreign exchange, bonds, and funds to improve global liquidity and operational efficiency.
Addressing the challenges faced by existing digital asset networks, Menon announced MAS’s launch of the Global Layer One (GL1) initiative. “GL1 is conceived as a global public good,” Menon said. “It will facilitate seamless cross-border transactions and enable tokenized assets to be traded across global liquidity pools while meeting relevant regulatory requirements.”
Menon emphasized that FinTech should be focused on solving real-world problems and improving people’s lives. He concluded, “Together, digital assets, digital money, and a foundational digital infrastructure can help realize the vision of seamless financial transactions across the world.”
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