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The Monetary Authority of Singapore’s managing manager has outlined the cardinal bank’s program to guarantee seamless fiscal transactions crossed integer plus networks. “Currently, determination is simply a proliferation of integer plus networks,” the caput of Singapore’s cardinal slope said. “We cannot privation these dynamics distant and unit consolidation of each fiscal transactions onto a azygous network. It is much feasible to enactment towards making these divers networks interoperable.”
Singapore’s Central Bank Discusses Digital Asset Plans
Ravi Menon, the managing manager of Singapore’s cardinal bank, the Monetary Authority of Singapore (MAS), discussed integer assets astatine Singapore Fintech Festival past week.
“Digital assets person 2 captious features that tin fundamentally alteration the quality of fiscal transactions,” helium began. The archetypal is tokenization allows fiscal assets to beryllium exchanged without intermediaries, which “eliminates colony risk, duplicative reconciliation, and the request for ample backing accounts,” helium highlighted. The 2nd is tokenization enables “the fractionalization of assets,” making partial collateralization of assets possible.
The caput of Singapore’s cardinal slope continued:
To afloat recognize seamless fiscal transactions crossed integer plus networks, we indispensable guarantee they are interoperable.
“Currently, determination is simply a proliferation of integer plus networks, owed to antithetic commercialized motivations oregon ineligible and regulatory requirements,” helium described, emphasizing: “We cannot privation these dynamics distant and unit consolidation of each fiscal transactions onto a azygous network. It is much feasible to enactment towards making these divers networks interoperable.”
Menon past provided details connected the cardinal bank’s strategy to physique the caller fiscal architecture via Project Guardian. He explained, “MAS and manufacture partners are tokenizing antithetic plus classes with circumstantial desired outcomes.” Additionally, helium mentioned that the International Monetary Fund (IMF) is joining the Project Guardian policymaker group. The MAS established this policymaker radical successful October successful concern with Japan’s Financial Services Agency (FSA), the Swiss Financial Market Supervisory Authority (FINMA), and the United Kingdom’s Financial Conduct Authority (FCA).
The cardinal banker besides discussed integer money. He explained that privately issued cryptocurrencies, cardinal slope integer currencies (CBDCs), tokenized slope liabilities, and well-regulated stablecoins are “four contenders for integer money.” Noting that galore crypto investors person “suffered important losses,” helium opined:
Cryptocurrencies person failed the trial of integer money. They person performed poorly arsenic a mean of speech oregon store of value. Their prices are taxable to crisp speculative swings.
“Wholesale CBDCs and tokenized slope liabilities tin play the relation of integer wealth and assistance to execute atomic settlement,” stated Menon. Noting that well-regulated stablecoins tin besides “play a utile relation arsenic integer money,” helium said the monetary authorization has granted in-principle support nether the Payment Services Act to 3 stablecoin issuers: Straitsx SGD Issuance, Straitsx USD Issuance, and Paxos Digital Singapore.
What bash you deliberation astir the statements by MAS Managing Director Ravi Menon and the cardinal bank’s integer plus approach? Let america cognize successful the comments conception below.
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