Stablecoins Hold Promise for Widespread Adoption, Says Singapore’s MAS

The Monetary Authority of Singapore (MAS) has expressed confidence in the growing potential of stablecoins as a future payment method.

In a recent conversation with The Business Times, MAS managing director Chia Der Jiun highlighted the significant promise of stablecoins, emphasizing their ability to offer more stable value when supported by appropriate regulations.

He noted that for stablecoins to achieve widespread use, they must be regulated in a way that ensures their value remains consistent.

MAS has already outlined a regulatory framework aimed at ensuring stablecoins maintain their value stability, particularly focusing on single-currency stablecoins.

The authority is working on adjusting the Payment Services (PS) Act to establish clear guidelines for stablecoin issuers, who must meet specific criteria to have their coins classified as “MAS-regulated stablecoins.”

This will allow users to differentiate between regulated stablecoins and others that do not meet these standards.

Regarding the introduction of a central bank digital currency (CBDC), MAS has stated that it is currently unnecessary. With cashless payments already widespread and efficient in Singapore, the case for issuing a Singapore dollar CBDC remains weak at present.