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

The Monetary Authority of Singapore (MAS) is set to trial tokenized bills that will be settled using a wholesale Central Bank Digital Currency (CBDC), marking a significant step in incorporating blockchain technology into the economy. This initiative was announced at the Singapore Fintech Festival. In addition to the trial, the MAS is drafting regulations aimed at governing stablecoins, focusing on ensuring stable reserve backing and reliability in redemption. As the financial landscape evolves, the MAS envisions the wholesale CBDC serving as a foundation for various private settlement solutions to meet market demands. The central bank emphasizes the importance of robust and safe settlement assets to facilitate global tokenized transactions. This regulatory framework is crucial as more stablecoins could become systemic, necessitating strengthened oversight. MAS is a pioneer among central banks in establishing a regulated environment for tokenization, evidenced by its Project Guardian, which explores practical applications for instant settlement across different financial sectors.

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