Singapore must be bold to keep thriving, says Piyush Gupta

The Republic must seize opportunities such as launching a digital Singdollar to continue punching above its weight on the global financial stage, said former DBS chief executive Piyush Gupta.

- Sheila Chiang Business Correspondent

Singapore has embarked on several blockchain and tokenisation pilots, but these remain on an experimental level, he said on Dec 8.

A blockchain is an advanced database mechanism that enables the recording of transactions and the tracking of assets within a business network. Tokenisation is the process of turning sensitive data into a nonsensitive digital token on a blockchain.

Mr Gupta added that the Monetary Authority of Singapore (MAS) has been conservative in certain areas, such as its approach to allowing retail access to cryptocurrencies.

“For instance, while DBS was one of the first banks globally to create a digital exchange to enable the trading of digital assets, it was not allowed to expand its access to retail customers,” he said.

“This has been a deliberate policy choice. While MAS recognises the potential of blockchain and to- kenisation to transform the current financial system, it has been cautious in ensuring consumer protection.

Still, consumer adoption of cryptocurrencies has been increasing, with 26 per cent of Singapore residents owning digital assets in 2024, he said.

Mr Gupta was speaking at an Institute of Policy Studies lecture titled "The future of finance: How Singapore can continue to punch above its weight" at the National University of Singapore on Dec 8.

He cited the Genius Act, a regulatory framework for payment stablecoins in the United States. Banks like JP Morgan have also allowed customers to link their bank accounts to Coinbase cryptocurrency wallets, he added.