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 with a wholesale Central Bank Digital Currency (CBDC) as part of its efforts to integrate blockchain technology into the economy. Simultaneously, the MAS is drafting legislation focused on regulating stablecoins, highlighting its priority for sound reserve backing and redemption reliability. During the Singapore Fintech Festival, MAS officials stated that the wholesale CBDC would serve as a foundational component, facilitating private settlement assets across various market needs. This trial aims to enhance the appeal of tokenization, which represents real-world assets like bonds as digital tokens tradable on blockchains. MAS is recognized among global central banks for its proactive approach to establishing a regulatory framework for digital assets, with ongoing initiatives such as Project Guardian to explore tokenization's applications in finance. MAS officials noted that as stablecoins gain prominence, stronger regulations will be necessary to ensure their robustness in the financial system.

Source 🔗