Singapore Central Bank Chairman shows openness to stable coins
Singapore Central Bank Chairman shows openness to stable coins
bankers and government officials around the world are more open to crypto than ever before. Thaman Shanmugaratnam - Singapore Central Bank Chairman - recently said that cryptocurrency has a place in the country's Financial sector. All it needs are some regulations on illegal financing.
a place for stable coins
The minister's interest seems to focus most on stable coins, which in his opinion play a role in traditional financial systems. However, he admits that such assets have to be regulated in order to combat their use for "illegal finances".
This seems to be a common perspective of the regulatory authorities. Jerome Powell-Chairman of the US Federal Reserve- called He has "no intention" to prohibit cryptocurrencies, but shows increased concerns about the use of stable coins. Likewise, the second chairman Gary Gensler referred to stablecoins as "poker chips" at the casino gambling tables.
For Shanmugaratnam, stable coins offer great economic advantages despite the associated risks.
"I think the future will be one in which regulated stable coins will play a useful role in a traditional payment system that is innovative and will be interoperable for cheap, quick and immediate payments," he said.
The central bank said that it remains open to cryptocurrencies on behalf of the technological innovation overall. Singapore has recently built his status as a global crypto-tech hub. A survey this summer Singapore has cryptocurrencies.
Tharman Shanmugaratnam, chairman of the central bank of Singapore. CNBC
"fintech", not "crypto"
The minister does not use terms such as "crypto" or "cryptocurrency" and instead digital assets appealed as "fintech". In his view, financial technologies are expanding financial services for people without bank details and at the same time force the traditional financial systems to improve.
to name such assets "currency" is foolish because they are unsuitable as a medium due to their volatile prices.
"If you have an instrument whose price fluctuates, it will never be a money," he said. "It will be a speculative advantage, both for the wise as well as for the stupid."
el Salvador is still the only country that makes Bitcoin a legal means of payment. In order to compensate for the price fluctuations of Bitcoin, the state wallet "Chivo" enables the receivers of Bitcoin to automatically convert their income into Fiat money.
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