Singapore has been identified as a key location for a number of cryptocurrency platforms. It’s one of the more progressive, with a well-thought-out regulatory structure in place. Jeremy Ng, managing director of Gemini Pacific Asia, said, “I think having that clarity is quite crucial.”
DBS, the country’s largest bank, launched a digital exchange in 2020, and trading volumes nearly tenfold increased in the first quarter of 2021. In May, it successfully issued a $1 billion digital bond.
“To service both our retail and institutional clients across the entire Asia Pacific, including Australia,” Ng added, Singapore would be used as a platform to extend farther into the continent. In addition, the Singapore government has allocated S $12 million ($8.7 million) to help speed blockchain development.
Singapore as a crypto incubator
Singapore is ranked second in the world for ease of doing business. Crypto companies have been encouraged to set up shop there as well, drawn by the state’s friendly regulatory environment—a stark contrast to the increasingly hostile reception afforded to many crypto firms in Hong Kong, London, and Washington.
central bank digital currencies (CBDCs). They were created by Singaporean blockchain engineer U-Zyn Chua, co-founder of DeFiChain. For the Bahamas’ central bank, he created the world’s first CBDC, the Sand Dollar.
Around 90% of the world’s central banks are currently working on a digital currency. The Monetary Authority of Singapore (MAS), Singapore’s financial regulator, along with the IMF, World Bank, and others, launched the Global CBDC Challenge in June. The project’s goal is to promote innovation and real-world CBDC payment applications.
Singapore is also collaborating with the Bank of International Settlements (BIS) on Project Dunbar, an initiative to investigate governance and connectivity for cross-border payments using multiple CBDCs, which would serve as the foundation for a future international settlement network.