The head of the Monetary Authority of Singapore (MAS), the de facto central bank of the city-state, has spoken of the blockchain potential in international payments.
During a speech on Thursday at a financial industry event, MAS managing director Ravi Menon doubled his belief that one of the “strongest” use cases for cryptographic tokens is to facilitate cross-border settlements.
“This is the challenge that the Singapore Ubin Project has set out to solve: using the Blockchain technology to allow entities from all jurisdictions to make payments to each other.”
He went on to say that, after two “successful” concept tests, MAS partnered with the Bank of Canada “to test and develop a cross-border solution using cryptographic tokens issued by the two central banks.”
The comments follow Menon’s previous comments that, although he believes that cryptographic chips do not have the right to be called coins due to the lack of payment, storage and accounting features, he believes that “we can never say” that they will not become money. a currency in the future.
That said, he also expressed concern during the last speech about the growing risks associated with emerging tax technology, saying that MAS has been watching more and more areas such as fundraising, money laundering and affecting financial stability.
In particular, on the investor protection front, Menon reiterated the orientation of the initial supply of currencies (ICO) previously reported by MAS, warning that certain tokens could be regulated as securities.
Under this rule, the issuers of initial currencies must comply with the securities rules before launching the sales of tokens. In addition, the secondary markets that facilitate the commercialization of ICO tokens must also be registered and approved by the MAS, according to Menon.
And, nevertheless, the general director also affirmed that MAS does not wish to repress the innovation around the blockchain technology by introducing an onerous regulation, although he admitted that reaching the correct balance remains a challenge for the authority.