Singapore's Central Bank to Trial Tokenized Bills, Introduce Stablecoin Laws

The Monetary Authority of Singapore (MAS) plans to trial tokenized bills settled with a wholesale Central Bank Digital Currency (CBDC). This initiative is part of MAS's strategy to incorporate blockchain technology more deeply into its financial ecosystem. Additionally, MAS is preparing draft legislation for a regulatory framework around stablecoins, aiming to ensure sound reserves and reliable redemption structures. The MAS is pursuing a wholesale CBDC as a foundational element in a system utilizing private settlement assets for diverse market demands. This includes examining how tokenization of real-world assets can facilitate more efficient transactions, potentially reducing the need for intermediaries. With rising stablecoin adoption, MAS acknowledges that if any stablecoin becomes systemic, regulatory measures will need enhancement to maintain stability and security in the financial system.

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