Singapore Central Bank: the blockchain is ideal for international payments

Singapore Central Bank: the blockchain is ideal for international payments

Managing Monetary authority of Singapore (MAS), which de facto perform the functions of a Central Bank’s city-state, told about the possible potential of blockchain technology in the field of international payments.

During a speech on Thursday the Director of MAS, Ravi Menon confirmed his opinion that one of the “most powerful” options for the use of cryptographic tokens is their use in the field of international payments.

This is the challenge that took Ubin Singapore project: to use the blockchain technology to allow companies in different jurisdictions to carry out mutual payments.

In the course of his speech he said that, MAS has partnered with the Bank of Canada “in the development of international solutions based on blockchain technology.”

Earlier, Menon has said that he believes that the tokens do not have the right to be called a currency, given the actual lack of payment function, storage and accounting. But at the same time, he believes that it is impossible to exclude the possibility that tokens will fully perform the monetary function in the future.

He also expressed concern about the risks that bring new technology to raise funds, as well as the opportunities provided by cryptocurrencies for money laundering and the impact on financial stability.

Protecting investors is another urgent problem for cryptocurrencies. If crypto tokens represent ownership or security interests in assets or any property of the Issuer or the debt owned by the Issuer, they may be treated as securities.

Under this rule, issuers of coins must comply with the rules of the securities at issue tokens. In addition, secondary markets, working with ICO tokens must also be registered and approved by the MAS.

Nevertheless, the Manager said that MAS does not want to suppress the innovation that carries the blockchain technology, although he acknowledged that the achievement of regulatory balance remains a challenge for the authorities.

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