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A Local Executive from Singapore States that the Country is Exploring Wholesale CBDC

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Nov 30, 2020
A Local Executive from Singapore States that the Country is Exploring Wholesale CBDC

Since the launch of the cryptocurrencies, Singapore has been considered as one of the main hubs for the platform. Many crypto-exchanges and other crypto-related firms have headquartered in Singapore. Now, the time has come for the country to look forward to adopting the central bank digital currencies.

It was one of the Chief Fintech Officers ‘Sopnendu Mohanty’ at Singapore’s central bank sharing his thoughts around wholesale CBDC.

The executive ‘Mohanty’ stated what the central bank of Singapore is currently in process of doing. He stated that the central bank of Singapore is exploring how it can adopt the whole CBDC. Apart from being the chief fintech officer at the Singaporean central bank, Mohanty is also the financial regulator. He is currently a representative of the Monetary Authority of Singapore.

Mohanty recently shared his remarks and views around CBDC while giving an interview to one of the crypto-reporting online forums. He stated that in Singapore, there is currently not much need for a CBDC system in the retail sector.

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He stated this while commending the payment infrastructure that is currently operating in Singapore. Mohanty stated that the current Singaporean payment infrastructure matches the fee structure and speed of transactions that the CBDC offers.

This is the reason why the central bank of Singapore is exerting its resources and focus on a different system. It is focused more on introducing a wholesale CBDC system. Once a wholesale CBDC system is developed and introduced, it will facilitate financial institutions in so many ways.

A few of the most prominent uses that the financial institutions would be able to make are payments and settlement of securities among each other.

Mohanty also hinted that the central bank of Singapore is already working on creating such a system and is currently in the testing phase. He stated that now it is time for the Singaporean central banks to focus on going into production than keep sticking to testing.

He stated that although considered extreme the regulatory infrastructure of Singapore clear and straightforward. These attributes make Singapore one of the most attractive hubs for the cryptocurrency firms that wish to operate in Southeast Asia.

He did point out that it would not be wise or technically correct to call Singapore crypto-friendly. He clarified that Singapore currently practices one of the most complex and strict regulatory systems when it comes to crypto-assets.

However, he stated that even after the strictness, it allows crypto-businesses to operate if on its soil if they are able to comply and adhere to the policies and regulations imposed by the Singapore government.

He also shared that the central bank of Singapore still considers crypto-businesses pose a high risk. But the technology they are built on is neutral and beneficial for the global financial systems.

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