Monetary Authority of Singapore starts consultation on digital payment tokens, e-money

Singapore enacted the Payment Services Act earlier in 2019. The goal is to provide a flexible framework for the growth of innovative payment services and Fintech in general. The Act provides the guidelines for the regulation of new forms of payments including digital tokens or cryptocurrency. MAS states that “recent innovations have led to the emergence of new payment instruments that could potentially challenge the prevailing concept of money.”  Hence, a public consultation to garner information and feedback from interested parties.

One of these “innovations” may be the rise of stablecoins and Facebook’s proposed Libra – a non-sovereign digital currency that could challenge fiat, according to the Crowdfund Insider press release.

Libra is an example of a stablecoin. According to a whitepaper published by Facebook on 18 June 2019, Libra is a global cryptocurrency that will comprise tokens backed by a reserve of real assets designed to give it intrinsic value. The Libra Reserve aims to ensure the price stability of Libra.”