Ravi Menon, governor of the central bank of Singapore, thinks that cryptocurrencies will not take part in the financial ecosystem of the future.
Menon, chairman of MAS, which serves as Singapore’s central bank. “There are four candidates that could be digital money.” said.
According to Menon, speaking at the Singapore Fintech Festival, these are: from privately produced cryptocurrencies, central bank digital currencies (CBDC), tokenized bank liabilities And from heavily regulated stablecoins is formed.
Menon, cryptocurrencies digital money He said he failed his exam because they “performed poorly as a medium of exchange or store of value.” MAS President, cryptocurrency “There have been sharp, speculative fluctuations in prices, and many cryptocurrency investors have suffered significant losses.” added.
Singapore central bank says properly regulated stablecoins Could support CBDCs he thinks. Menon cited StraitsX’s stablecoin and the new stablecoin that Paxos Digital plans to issue in Singapore as examples.
Within the scope of Project Guardian, carried out by MAS and several global banks, currencies and bonds are tokenized to increase global liquidity, accelerate cross-border transactions and increase efficiency in financial markets.
According to Menon’s statements, existing digital asset networks today are experiencing difficulties due to legal uncertainty and lack of interoperability. MAS is launching the Global Layer One (GL1) initiative to solve this problem.
Menon said that with Global Layer One, “cross-border transactions can be made seamlessly, and tokenized assets can be bought and sold between global liquidity pools in accordance with relevant legal requirements.”