Singapore sees no need for government digital currency

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The executive director of the Monetary Authority of Singapore (MAS) Ravi Menon believes that the digital currency of the Central Bank is not relevant, but in the future it will be useful for solving socio-economic problems in the country.

MAS Executive Director Ravi Menon said at FinTech Festival that there is no need now
use digital currency of the Central Bank for retail in the country.

“Physical money is likely to be with us for a while, so the need for a digital version of cash remains controversial. The benefits of financial inclusion of the digital Singapore dollar are inconclusive. A large proportion of Singaporeans have bank accounts and electronic payments in Singapore are widespread, highly efficient and competitive. The possible replacement of fiat currency with digital currencies of the Central Bank at this stage is a serious risk. ”

The executive director of MAS recognizes that in the future, innovative solutions provided by the state digital currency can bring potential benefits to the country’s economy in solving socio-economic, rather than financial problems.

He said that MAS is collaborating with local businesses in the implementation of the Project Orchid pilot project to develop and implement the state digital currency. During the implementation of the program for the study and launch of the digital currency, the Central Bank MAS cooperates with a number of organizations, including the IMF, the International Bank for Reconstruction and Development, the Asian Development Bank, the United Nations Capital Development Fund and the United Nations High Commissioner for Refugees and participates in the United Nations Development Program and the Organization Economic Cooperation and Development (OECD) on the global issue of government digital currencies and retail development.

To implement the project to launch the digital currency of the Central Bank, the Singapore authorities have selected 15 companies, including the ANZ banking group, Ethereum software developer ConsenSys and IBM. Monetary Authority of Singapore is generally positive about innovative financial technologies.

This month, MAS chief executive Ravi Menon said the regulator would not ban cryptocurrencies as they could be a key factor in the country’s future development. A month ago, the head of MAS, Tharman Shanmugaratnam, announced that he sees several ways to use stablecoins.

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