The Monetary Authority of Singapore says only fully regulated, reserve-backed stablecoins will qualify as settlement assets as Singapore prepares legislation and expands CBDC trials.
Singapore’s central bank has signaled an upcoming shakeout of unregulated stablecoins as the country moves to protect the integrity of assets within its financial ecosystem.
In a keynote speech at the Singapore FinTech Festival on Thursday, Monetary Authority of Singapore (MAS) managing director Chia Der Jiun warned that “unregulated stablecoins have a patchy record of keeping their peg.”
“There has been a lot of attention on stablecoins. They are offered as open platforms, able to work across many different applications and use cases,” Chia said. “While agility is a strength, stability needs to be reinforced.”
