Singapore is gearing up for a tokenized world by 2030, says MAS director

Singapore is carefully positioning itself as an international hub for the adoption and industry of cryptocurrencies. executive director of the country’s Monetary Authority recently said the same thing and is even preparing for a ‘tokenized world’ by 2030. While agreeing that regulation is needed in the space, he hopes it will help the technology thrive.

Cryptocurrencies are the future

MAS Director Ravi Menon showed his enthusiasm for the space in an interview with Bloomberg yesterday. When asked for a comment on the record prices of Bitcoin, the director said that his interest in cryptocurrencies is much “broader.” re are many promises in crypto tokens, but it is still too early to predict their future. Cryptocurrencies could very well lead to economic prosperity, or risk and confusion, or perhaps nowhere, according to him.

Overall, Menon recognizes the “lower cost, higher efficiency” and higher “market share” that cryptocurrencies and decentralized finance can bring. In that regard, he says that Singapore is trying to understand cryptocurrencies, blockchains and smart contracts before its international competitors.

“If 2030 is going to be a tokenized economy, or a world, we want to make sure we are well positioned,” said the director.

Ravi Menon. Source: Bloomberg

Criticism of cryptocurrencies

Of course, the director also acknowledges some risks that cryptocurrencies carry, in his opinion. It defines “money laundering” and “terrorist financing” as “obvious” and dire use cases for cryptocurrencies. Christine Lagarde, president of the European Central Bank, has also shown concern about “fun business” in cryptocurrencies, along with many other officials. However, the data suggests that the use of digital assets for illicit financing is vastly overvalued.

Also, due to the volatility of cryptocurrencies, Menon notes that they are “not for the retail investor.” In fact, institutional participation in cryptocurrencies is a relatively recent phenomenon, which can help stabilize the price of Bitcoin. In previous years, the market was still primarily driven by retail, possibly contributing to price fluctuations.

Finally, the director is not a Bitcoin maximalist. When asked to convert Bitcoin or Ether into legal tender, he claimed that none of the activities constituted “money.” Rather, he sees the sole purpose of cryptocurrency to “facilitate meaningful economic transactions.”

Interestingly, this is the opposite position that many institutions and companies have been adopting lately. From Michael Saylor to Mark Cuban, most enthusiasts recognize Bitcoin as “digital gold.” While the asset is priced fairly well, both Saylor and Cuban also argue that its use for transactions will be limited.

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