Higher participation: People at the Jubilee Bridge at the Marina Bay waterfront in Singapore. Consumer adoption of cryptocurrencies has been increasing, with 26% of Singapore residents owning digital assets in 2024. — AFP
SINGAPORE: The city-state must seize opportunities such as launching a digital Singdollar to continue punching above its weight on the global financial stage, according to former DBS chief executive Piyush Gupta.
Singapore has embarked on several blockchain and tokenisation pilots, but these remain on an experimental level, he said on Monday.
A blockchain is an advanced database mechanism that enables the recording of transactions and the tracking of assets within a business network.
Tokenisation is the process of turning sensitive data into a non-sensitive digital token on a blockchain.
Gupta added that the Monetary Authority of Singapore (MAS) has been conservative in certain areas, such as its approach to allowing retail access to cryptocurrencies.
“For instance, while DBS was one of the first banks globally to create a digital exchange to enable the trading of digital assets, it was not allowed to expand its access to retail customers,” he said.
“This has been a deliberate policy choice. While MAS recognises the potential of blockchain and tokenisation to transform the current financial system, it has been cautious in ensuring consumer protection.”
Still, consumer adoption of cryptocurrencies has been increasing, with 26% of Singapore residents owning digital assets in 2024, he said. Gupta was speaking at an Institute of Policy Studies lecture titled “The future of finance: How Singapore can continue to punch above its weight”, held at the National University of Singapore.
He cited the Genius Act, a regulatory framework for payment stablecoins in the United States.
Banks like JP Morgan have also allowed customers to link their bank accounts to Coinbase cryptocurrency wallets, he added.
Stablecoins are a type of cryptocurrency that aims to maintain a stable value by being pegged to another asset, such as a fiat currency. They can be used to make payments and tend to be less volatile than crypto.
Gupta, who led DBS Group as its chief executive officer from November 2009 until his retirement in March, said Singapore has the potential to shape the future of finance, given its nimbleness, strong public-private partnerships and the ability to think big and be bold.
“This future is ours for the taking. Singapore is small enough to be nimble, but big enough to matter. It is one of the most stable countries in the world, yet one of the most innovative. It is highly pragmatic, yet bold enough to dare to dream and build a new future.”
He added that transforming the way finance works will require a new infrastructure and bringing all the players – incumbent financial institutions, startups, non-financial institutions and the public sector – together. — The Straits Times/ANN
