• February 28, 2024

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Singapore’s Central Bank Chief: Private Cryptocurrencies Have Failed

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Ravi Menon, chief of Singapore’s central bank, has said private cryptocurrencies have not passed the test of financial fundamentals and will not last in the monetary space, Bloomberg has reported.

He identified during a panel discussion at an event in Hong Kong three key components of the future monetary system: CBDCs, tokenized bank liabilities, and well-regulated stablecoins.

According to him, private digital currencies have completely failed the money test, as “nobody keeps their life savings in these things. People buy and sell these things to make a quick buck.”

Menon has pointed out that regulators, on the contrary, are moving towards creating a system of stablecoins backed by government securities or fiat currencies, which will allow the use of money supply in a narrow sense.

He has highlighted:

“The beauty is it’s in token form and it can be used for variety of innovative applications.”