Singapore’s new president and his influence on crypto policy
The former Singapore finance minister and central bank chairman, Tharman Shanmugaratnam, has been elected as the country’s president with over 70% of the vote. While the role is largely ceremonial, Shanmugaratnam’s experience may give him some influence in shaping policy related to finance, including cryptocurrencies and central bank digital currencies (CBDCs).
Main breakdowns:
- Singapore’s transition from an early adopter to a regulatory jurisdiction
- Shanmugaratnam’s laissez-faire stance on cryptocurrencies
- Strict risk management requirements for banks’ exposure to crypto assets
- Shanmugaratnam’s belief in the role of regulated stablecoins in the future of finance
- The MAS’s active review of regulating stablecoins and release of a regulatory framework
As the former chairman of Singapore’s central bank, Shanmugaratnam witnessed the collapse of local crypto darlings Terraform Labs and Three Arrows Capital. He has previously described crypto as “purely speculative” and “slightly crazy,” suggesting that it should remain unregulated but with clear warnings about the associated risks. However, he believes there is a role for regulated stablecoins in the traditional payment system, and the MAS is actively reviewing its approach to regulating stablecoins.
Hot Take:
While Shanmugaratnam’s election as president may not have an immediate impact on the crypto industry, his experience and views on finance could shape Singapore’s future policies. The country’s transition from early adoption to regulatory balance reflects the challenges faced by many jurisdictions in finding the right approach to cryptocurrencies and CBDCs. The MAS’s active review of stablecoin regulation demonstrates Singapore’s willingness to adapt to the evolving crypto landscape. As the industry continues to mature, it will be interesting to see how Singapore, under Shanmugaratnam’s leadership, balances innovation and regulation in the crypto space.
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