SINGAPORE – The Monetary Authority of Singapore (MAS), the nation’s central bank, announced today that it has no current plans on regulating cryptocurrencies such as bitcoin and went on to disclose that they will retain “an open mind.”
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“We’ve taken the approach that the currency itself does not pose the risk that warrants regulation. Our approach is to look at the activity around the cryptocurrency and then make an assessment of what regulation would be suitable,” said Ravi Menon, MAS Managing Director.
Menon also said that if cross-border payment done through cryptocurrencies like Bitcoin is more suitable and effective, the central bank should put more emphasis on how to utilize Blockchain and cryptocurrencies to assist more people.
Recently, Hong Kong’s central bank has publicized a partnership with Singapore intended to digitize trade finance using blockchain technology.
The venture with MAS will focus on a blockchain proof-of-concept termed the Hong Kong Trade Finance Platform (HKTFP).
The project is intended to digitize trade papers and decrease fraud in the industry.
The banks plan to create a cross-border substructure that would act as a link between HKTFP and a comparable platform in Singapore.
The program consists of a quicker payment system being deliberated in Hong Kong and developments encouraging banks to open their systems to technology companies.