The Monetary Authority of Singapore (MAS) says stablecoins have the potential to become a widely used means of payment.
In an interview with The Business Times, MAS CEO Chia Der Jiun says stablecoins have huge potential provided there are regulations in place to prevent the crypto assets from deviating from their pegged value.
“Stablecoins have features that provide greater value stability and have the potential to become a widely used payment instrument. MAS sees great potential in stablecoins, provided they are well regulated and have a high degree of value stability.
To this end, MAS has finalized a regulatory approach for stablecoins that focuses on regulating the value stability risk of stablecoins in a currency.”
The MAS says it wants to create a regulatory framework for stablecoins to protect users and consumers.
“We are working on the necessary legislative changes to the PS (Payment Services) Act to implement the stablecoins framework. Only stablecoin issuers that meet all the requirements of the framework can apply for their stablecoins to be regulated by MAS as “MAS-regulated stablecoins”. This will…
