Singapore has no urgent need for a retail central bank digital currency (CBDC) but the door is open for it in the future, according to an official of the Monetary Authority of Singapore (MAS).
MAS Managing Director Ravi Menon said the agency is teaming up with the private sector on a retail CBDC project in preparation of the possible issuance of a digital Singapore dollar in the future.
Menon said, however, that there were no strong reasons for or against a retail CBC in the country, as physical cash is likely to remain standard for some time before the need for a digital version.
Menon said the possibility of a retail CBDC was ultimately socioeconomic, rather than a monetary consideration, as he raised the question of public comfortability on holding only bank deposits.
The official noted that there is a need to adarp regulatory frameworks in consideration of decentralized finance and to balance the benefits of innovation while managing risks.
The MAS has partnered with the IMF, World Bank, Asian Development Bank, and UN units on a Global CBDC challenge to develop a retail CBDC.