Singapore is ready to launch it’s own central bank digital currency, or CBDC, said Sopnendu Mohanty, chief fintech officer at Singapore’s central bank and financial regulator, the Monetary Authority of Singapore.
Speaking on the subject during an exclusive interview with Cointelegraph, Mohanty pointed out that in Singapore, there is not much demand for a retail CBDC given that payment system infrastructure in the country already allows fast and cheap payments among individuals.
Instead, Singapore’s central bank is focused on the development of a wholesale CBDC, which would be used to facilitate settlements of securities and payments among financial institutions.
“I don’t think we need to do any more experiments on wholesale CBDCs,” pointed out Mohanty. “Now, we should start thinking about going into production.”
According to Mohanty, a severe but clear regulatory framework coupled with an openness to innovation is what makes Singapore one of the most attractive places for cryptocurrency businesses in Southeast Asia.
“Defining Singapore ‘crypto-friendly’,” said Mohanty, “would be “highly misleading.”
In fact, he pointed out that the small city-state has a very clear regulatory framework in place to prevent money laundering and the financing of terrorism.
Singapore’s central bank still believes that while business activity poses certain risks, the technology itself is neutral.
“Allowing crypto to be an experimental construct in Singapore is what we are looking at,” he explained.
Watch the full interview on our YouTube channel, and don’t forget to subscribe!
Julia started off her career as a travel blogger, hitchhiking and exploring the world as a nomad. After many years of traveling with little to nothing on her, volunteering, and waiting tables from town to town across Europe and US, she met a crypto trader who opened her eyes to how she can invest and make money with blockchain. Nowadays she is a trader and a blogger, writing about new currencies, NFTs, p2e platforms, and DeFi in general.