Singapore is studying the central bank’s digital currency (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 there is not much demand for a retail CBDC in Singapore as the country’s payment systems infrastructure already enables fast and inexpensive payments between individuals.
Instead, the Central Bank of Singapore is focusing on developing a wholesale CBDC to facilitate the settlement of securities and payments between financial institutions.
“I don’t think we need to do any further experiments with wholesale CBDCs,” said Mohanty. “Now we should think about going into production.”
According to Mohanty, Singapore is one of the most attractive places for cryptocurrency companies in Southeast Asia due to a strict but clear legal framework and openness to innovation.
“The definition of ‘crypto-friendly’ in Singapore,” said Mohanty, “would be” very misleading “.
In fact, he pointed out that the small city-state has a very clear legal framework to prevent money laundering and the financing of terrorism.
The Central Bank of Singapore continues to believe that while doing business carries certain risks, the technology itself is neutral.
“We want crypto to be an experimental construct in Singapore,” he explained.
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