That said, MAS has repeatedly acknowledged the transformative economic potential of distributed ledgers for use cases such as cross-border payments, trade finance, and pre- and post-trade capital market activities. The problem here is that a distributed ledger simply cannot work without cryptocurrencies; they go hand-in-hand. So how do we tame the proverbial beast without stifling innovation?
At a Green Shoots seminar in late August, Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), succinctly summarised the central bank’s stance on cryptocurrencies and digital assets in his opening address aptly titled "Yes to Digital Asset Innovation, No to Cryptocurrency Speculation". Although the headlines that ensued may lead you to believe otherwise, this didn’t come as a surprise to many in the industry.
Even as far back as 2017, MAS has consistently made its position clear: Cryptocurrencies are risky investments and are not suitable for retail investors. This is primarily due to speculation, causing cryptocurrencies to seemingly take on a “life of their own” outside of the distributed ledger, resulting in prices that are not tied to any underlying economic value.
