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 a forthcoming 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.”
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