CBDC Could Become A ‘Permanent Feature,’ According To MAS Director
Although decentralized crypto assets like Bitcoin (BTC) “fail as money,” Singapore’s central bank head has claimed that digital assets or CBDC might become a “permanent feature of the financial landscape.”
Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), admitted in a new opinion piece published by the International Monetary Fund (IMF) that he can see a future in which digital assets – primarily stablecoins and central bank digital currencies (CBDCs) – coexist with the current system, and even become a “permanent feature” of it.
“Traditional fiat currencies will continue to dominate, but securely backed private stablecoins and wholesale CBDCs could be expected to play an important role in cross-border payment and settlement,” Menon wrote.
He noted that even though the rationale for retail CBDCs, which are supposed to be used by individuals, might conceivably develop as a modest component of the monetary base—similar to the role performed by cash today—although the case for them is “less strong.”
The difference between central bank money, now recognized as a real currency, and commercial bank money retained as bank deposits, according to the Singaporean central banker, is of little importance to most people.
Meanwhile, Menon stated that so-called private and unbacked cryptocurrencies like Bitcoin “fail as money.” Menon expressed his organization’s skepticism about the possibility of a retail CBDC being launched in his native country of Singapore.
“MAS believes that the case for a retail CBDC in Singapore is not compelling for now, given well-functioning payment systems and broad financial inclusion,” he wrote.
He said that the current payment system is already fast, efficient, and free and that a residual quantity of currency is still in circulation and unlikely to disappear.
Despite this unfavorable posture, Singapore is constructing the required infrastructure for a retail CBDC if conditions alter, according to the MAS director.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Author
News
CBDC Could Become A ‘Permanent Feature,’ According To MAS Director
Although decentralized crypto assets like Bitcoin (BTC) “fail as money,” Singapore’s central bank head has claimed that digital assets or CBDC might become a “permanent feature of the financial landscape.”
Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), admitted in a new opinion piece published by the International Monetary Fund (IMF) that he can see a future in which digital assets – primarily stablecoins and central bank digital currencies (CBDCs) – coexist with the current system, and even become a “permanent feature” of it.
“Traditional fiat currencies will continue to dominate, but securely backed private stablecoins and wholesale CBDCs could be expected to play an important role in cross-border payment and settlement,” Menon wrote.
He noted that even though the rationale for retail CBDCs, which are supposed to be used by individuals, might conceivably develop as a modest component of the monetary base—similar to the role performed by cash today—although the case for them is “less strong.”
The difference between central bank money, now recognized as a real currency, and commercial bank money retained as bank deposits, according to the Singaporean central banker, is of little importance to most people.
Meanwhile, Menon stated that so-called private and unbacked cryptocurrencies like Bitcoin “fail as money.” Menon expressed his organization’s skepticism about the possibility of a retail CBDC being launched in his native country of Singapore.
“MAS believes that the case for a retail CBDC in Singapore is not compelling for now, given well-functioning payment systems and broad financial inclusion,” he wrote.
He said that the current payment system is already fast, efficient, and free and that a residual quantity of currency is still in circulation and unlikely to disappear.
Despite this unfavorable posture, Singapore is constructing the required infrastructure for a retail CBDC if conditions alter, according to the MAS director.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Harold
CoinCu News
Other Posts
Related Posts
