MAS Investigates Retail CBDCs

Until now the Monetary Authority of Singapore (MAS) has concentrated on wholesale Central Bank Digital Currencies (wCBDC), which are used with financial institutions. The implications of introducing a retail CBDC (rCBDC) are much greater. MAS has decided to make an assessment of the economic case for a Singaporean rCBDC looking at the implications for financial stability and monetary policy in particular.

Overview

In overview MAS has established two related inferences. First, its literature review and assessment of the current payment landscape in Singapore do not suggest a strong economic motivation for an rCBDC. At the same time nor do they suggest intractable monetary and financial stability considerations against one.

Second, emerging digital complementarities and global competitive forces could shape a future monetary arrangement that does include a digital form of the Singaporean Dollar issued by MAS for general use.