Key Takeaways
- Stablecoins will be integrated into daily banking services without being formally categorized as an "illicit transaction".
- Cryptocurrency has gone so far as to become a legal asset in a country, with a "State Wallet" to which citizens have access for fiat conversion.
The minister strongly believes that Cryptocurrencies, particularly Stablecoins at this time, could be used in the more regular banking systems. Thuram also agrees that regulations must be held in order to combat "illicit transactions and finances".
The Federal Reserve of the United States has admitted that it does not intend to ban Cryptocurrencies, but is concerned about the increased use of Stablecoins.
Stablecoins was also likened to gambling chips by Gary Gensler, the SEC chairman.
In direct contrast with those two, the head of the Central Bank of Singapore holds that Stablecoins has great economic benefits, but does not deny dangers. These benefits were mentioned to include, but are not limited to, cheaper, faster, and instant payments across borders.
A survey conducted this summer by the Independent Reserve shows that 43% of Singaporeans own Cryptocurrencies. With the country strengthening its reputation as a hub for crypto tech on a global scale, about 46% of Singaporeans are preparing to purchase Cryptocurrencies next year.
93% of Singapore locals have heard of Bitcoin, which puts it ahead of every other cryptocurrency, with 40% of the population seeing Bitcoin as an investment option or a means of investment, while about a quarter (25%) viewed it as a "store with value" and "gold but digital".
At the beginning of 2021, the Central Bank of Singapore asserted that Bitcoin could become another legally accepted store of value if it shows the ability to cope with its associated volatility.
Bitcoin has become a legal tender in El Salvador. The country also has its own National wallet called Chivo which enables its citizens to get fiat money for their Bitcoin.
Because the Federal Reserve is pushing for the development of financial instruments and innovation, the Central Bank is open towards Cryptocurrencies, Thuram said. Thuram Shanmugaratnam was once an authority in the International Monetary Fund organisation, and a powerful politician in Singapore.
Related Post: US regulators seek to establish guidelines for banks dealing in crypto
Tharman Shanmugaratnam does not see these "digital golds" as currency, but rather as something else. This is because people without banks have found, in these Technologies of Finance, access to banking services which has, in turn, stimulated traditional banks to adapt and grow.
Because of the volatility of this instrument of economy, the minister says it would be inappropriate to officially term it a currency.
So, which countries do you think will be next to integrate cryptocurrency into their traditional banking services by the end of 2021, and which country will be next to have a State Wallet and other innovative Technologies for a crypto legal tender by next year?
