{"id":1822,"date":"2023-11-21T10:50:18","date_gmt":"2023-11-21T10:50:18","guid":{"rendered":"https:\/\/ethereumcode.io\/singapore-digital-asset-network-financial-transactions-blueprint\/"},"modified":"2023-11-21T10:50:18","modified_gmt":"2023-11-21T10:50:18","slug":"singapore-digital-asset-network-financial-transactions-blueprint","status":"publish","type":"post","link":"https:\/\/ethereumcode.io\/singapore-digital-asset-network-financial-transactions-blueprint\/","title":{"rendered":"Singapore Unveils Blueprint for Smooth Financial Transactions Over Digital Asset Networks"},"content":{"rendered":"
The top executive of the Monetary Authority of Singapore plans to build an environment that facilitates flawless transactions among various digital asset networks. His vision is to allow interoperability among a variety of digital assets as opposed to consolidating all transactions onto a single network.<\/p>\n
The Monetary Authority of Singapore (MAS), led by Managing Director Ravi Menon, recently presented their future roadmap for digital assets at the Singapore Fintech Festival. Menon stated that there are two underlying aspects of digital assets that can substantially revolutionize financial dealings.<\/p>\n
Tokenization, the first feature, facilitates asset exchange without the need for intermediaries. This, according to Menon, mitigates settlement risk, removes duplicate reconciliation and the requirement for substantial funding accounts. The second feature is the fractionalization of assets, which allows for part collateralization of assets.<\/p>\n
Menon emphasized the need for interoperability among different digital asset networks to truly ensure seamless transactions. He went on to state that the increasingly diverse digital asset networks cannot be ignored or forced to consolidate into a single network.<\/p>\n
The Managing Director went on to shed light on Project Guardian, an initiative that aims to tokenize various asset classes to deliver specific outcomes. <\/p>\n
In terms of digital currency, he categorized them into four types: privately dispensed cryptocurrencies, Central Bank Digital Currencies (CBDCs), tokenized liabilities of banks and well-regulated stablecoins. However, he criticized cryptocurrencies stating they have failed in their role as digital money due to their vulnerability to speculative swings.<\/p>\n
Menon suggested that Wholesale CBDCs and tokenized bank liabilities could serve effectively as digital money and contribute to achieving atomic settlement. He further mentioned that stablecoins, if well-regulated, can also be significant players in the digital money arena. Menon announced the Monetary Authority of Singapore has expressed preliminary approval for three stablecoin issuers under the Payment Services Act.<\/p>\n