Singapore to Roll Out Stablecoin Regulations, Expand CBDC Trials

Singapore's Monetary Authority (MAS) is set to introduce new regulations for stablecoins while expanding its central bank digital currency (CBDC) trials. The MAS has emphasized sound reserve backing and redemption reliability in the upcoming stablecoin legislation, aiming to enhance confidence in digital assets. MAS managing director Chia Der Jiun highlighted that unregulated stablecoins have inconsistencies in maintaining their value peg, which can undermine trust. The regulator is also releasing a guide on tokenized capital markets products to aid understanding and compliance in this evolving field. MAS's approach combines strict regulation with industry-led pilots, facilitating safe tokenization without stifling innovation. They aim to standardize token formats and ensure interoperability, allowing for a robust ecosystem of asset-backed tokens. Despite the advancements, Chia noted that achieving widespread acceptance requires concrete use cases. Stakeholders emphasize the importance of clear guidance and better access for smaller innovators in the space. Singapore's goal is to balance regulation with innovation, creating a framework that supports both established firms and emerging players in the digital marketplace.

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