The digital currency revolution is here, and it’s not just reserved for Bitcoin and other decentralized cryptocurrencies. More and more countries are exploring the benefits of having a cashless society.
Sweden has previously voiced their desire to investigate the development of an e-krona, Israel is looking into creating a digital shekel, while Russia could soon develop their CryptoRuble. Venezuela also seems to be well on its way to issuing their Petro, even though the legality thereof is up for discussion.
Axel Weber, who is the chairman of Switzerland’s UBS, previously said that central banks and other financial authorities should seriously consider going this route.
Singapore Not Jumping on Board the Digital Train
However, the managing director of the Monetary Authority of Singapore (MAS), Ravi Menon, is not convinced that getting rid of traditional fiat money is the way to go.
According to the Financial Times, he had this to say on the matter:
Why would the central bank want to do that? If there’s any sense of nervousness about the banks, you will have a bank run; everybody is going to go into the central bank [with their deposits], and, if people placed their deposits with central banks, who’s going to extend credit?
“In practical terms, I think, that’s a long way off, one of the last things you’d want to think about doing.”
Even though MAS hopes to market Singapore as a haven for innovators hoping to improve the economic sector, stability is always at the forefront of the authority’s mind. Menon explained:
“That’s been our basic modus operandi, to be both a regulator and a promoter. Our governing mandate, is very clear: financial stability has predominance over financial development.”