Singapore considering crypto to meet costs of cross-border remittances


For the second year in a row, an Asian country overcome the index of economic freedom. that of Singapore World ranking and its high score was boosted by its property rights and commercial freedom ratings. What does this mean for its booming crypto economy?

Recently, crypto analyst Raoul Pal interviewed Sopnendu Mohanty, Chief Fintech Officer of Monetary Authority of Singapore to discuss CBDCs, regulation, interoperability, etc.

Freedom and fintech

Mohanty introduced Pal to the history of Singapore’s FinTech evolution and noted how Asian markets might “to go pastmore easily. Pal pointed out how far behind the West in terms of integration. Regarding regulation, Pal noted 20th century US securities laws.

In response, Mohanty explained what he called “Policy making through experimentation”. He noted,

“So that means we’re going to experiment with the market, we’re going to create a right environment where all of these disruptors can come to us and can build a product with us, and we would work together. We don’t want to put innovation in mind, it’s a really bad idea.

Regarding future developments, Mohanty confirmed it was planned to connect to India’s unified payments interface [UPI] in the first half of 2022. However, while talking about reducing transfer costs between Singapore and Thailand, Mohanty noted that a “digital currency” was the answer.

CBDC and beyond

Singapore was in the lead BIS Dunbar Project, which brought together central banks from Australia, Malaysia, Singapore and South Africa to test CBDCs in cross-border remittances.

Speaking of the Dunbar Project, Mohanty noted,

“And it’s going pretty well. And all the learnings that we have received from the various central banks on the bilateral corridor will be absorbed into this program. So, this is a part. Well, the question remains: when are we going to see this go into production implementation? My best guess is that it will always be a bilateral implementation. Whenever we are ready to go with this.

Interoperability vs innovation

Mohanty confirmed that Singapore has crypto exchanges and that they were “will be regulated. “However, he made it clear that he was more interested in cross-border remittances and investor protection.

When Pal raised the issue of crypto wallets, Mohanty admitted the market could move in this direction.

It should be noted, however, that Mohanty has confirmed the private sector would lead innovation and new systems. He Explain,

“We have no interest in creating new technologies. Our goal is interoperability. We focus on the security and robustness of the system. We are not in the business of building a technology stack.

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