Singapore to Roll Out Stablecoin Regulations, Expand CBDC Trials

Singapore's financial regulator, the Monetary Authority of Singapore (MAS), is set to introduce new regulations for stablecoins and expand its central bank digital currency (CBDC) trials as part of a strategic effort to strengthen its digital asset framework. MAS managing director Chia Der Jiun emphasized that regulated stablecoins could significantly enhance financial systems, while unregulated ones pose risks of instability. The new regulatory regime, which prioritizes solid reserve backing and redemption reliability, is nearing completion. Chia noted the necessity for stability and confidence in stablecoins amid their increasing adoption. Additionally, MAS will unveil a guide on tokenized capital markets to clarify regulations around tokenized securities and foster international collaboration on asset-backed tokens. This initiative follows earlier experiments with tokenized foreign exchange and fixed income under Project Guardian. The MAS aims to position Singapore at the forefront of digital finance while ensuring consumer safety and maintaining innovation pathways for newer firms in the ecosystem.

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