Cryptocurrency labeled as slightly absurd by Singapore's President Tharman Shanmugaratnam
Fresh Take:
Meet Singapore's new president, Tharman Shanmugaratnam, who's got the Experience to Steer the Financial Ship!
This dude's got some serious financial pedigree, moving into the mostly symbolic role of president. He's replacing Halimah Yacob, who won with a whopping 70.4% of the vote back in 2017.
Shanmugaratnam's career is nothing short of impressive. From academia at prestigious universities like the London School of Economics, University of Cambridge, and Harvard Kennedy School, to a lengthy stint at the Monetary Authority of Singapore (MAS), where he held vital roles for over two decades, this economist was even on the International Monetary Fund (IMF) leadership shortlist!
Shanmugaratnam's perspective on the crypto world is intriguing. He was initially pretty chill about cryptocurrency, but his views morphed by 2023. He called them "pure speculative and slightly crazy" at the World Economic Forum, but stressed that they shouldn't be heavily regulated, instead, authorities should offer "ultra clarity" regarding risks.
When it comes to banks and stablecoins, Shanmugaratnam's a little more cautious. In November 2022, he required Singaporean banks to maintain a capital buffer equivalent to $125 for every $100 invested in cryptocurrencies. Despite the insignificant exposure (less than 0.05% of their total risk-weighted assets), he insists on stringent risk management policies adhering to global norms.
Singapore's dedicating to maintaining a stable financial system, even amidst the digital asset revolution. The prudential treatment of less risky crypto assets is similar to that of traditional non-tokenized assets, demonstrating Singapore's commitment to stability.
So, what does Shanmugaratnam see for cryptocurrencies in the future? He envisions regulated stablecoins playing a big part in conventional payment systems, heralding a potential harmony between crypto and traditional finance.
Shanmugaratnam's evolving stance on cryptocurrencies invites speculation about Singapore's financial future. His experience and evolving perspectives might shape Singapore's approach to the expansive digital currency and financial industries.
Fact Bits:- Singapore's Government recently budget spending plans have been approved by President Tharman Shanmugaratnam [ixigo]- Historically, Singapore has shown a progressive attitude towards financial technology, including cryptocurrencies and CBDCs [mergertechnews]- As a former Minister for Finance and MAS Chairman, Shanmugaratnam's background might influence Singapore's financial policy by emphasizing stability, innovation, and regulatory clarity [cleverism]- Singapore's government has shown a willingness to engage with emerging financial technologies while maintaining a cautious approach to ensure market stability and regulatory compliance [mergertechnews]
- Tharman Shanmugaratnam, with his extensive background in finance, business, and technology, might lead Singapore to invest in technologies that ensure stability, innovation, and regulatory clarity in the financial sector.
- In light of Tharman Shanmugaratnam's evolving stance on cryptocurrencies, it's expected that Singapore's approach to digital currencies and financial industries will emphasize the integration of regulated stablecoins into conventional payment systems, promoting harmony between crypto and traditional finance.
