Singapore to Roll Out Stablecoin Regulations, Expand CBDC Trials

The Monetary Authority of Singapore (MAS) is readying new regulations for stablecoins while expanding its central bank digital currency (CBDC) trials. MAS Managing Director Chia Der Jiun highlighted the importance of sound reserve backing and redemption reliability in stabilizing regulated stablecoins and boosting market confidence. Current stablecoins often struggle to maintain their pegged value, leading to diminished trust in the sector. The upcoming legislation aims to provide stability through robust oversight and aligns with global efforts to harmonize standards for asset-backed tokens. Moreover, MAS plans to publish a guide on tokenized capital markets to assist firms in understanding how these products fit within existing regulations. This regulatory framework aims to foster trusted, interoperable networks in Singapore’s digital finance landscape, facilitating innovation while ensuring consumer protection. Industry leaders called for smoother pathways for smaller firms to participate in pilots and for clearer guidelines to help existing fiat-backed stablecoins integrate into Singapore’s system. The collaborative efforts among regulators seek to prevent fragmentation and promote a unified global approach to digital assets.

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