Boosters of stablecoin payments say that they are attractive to merchants because of efficiency and low cost. However, they account for a very small share Singapore’s overall payments pie of US$56.2 billion.
While there is a lot of hype around stablecoins, it is important to keep in mind that they do not yet have strong support in some of the world’s most important economies. For stablecoins to be adopted on a large scale globally, it is likely that the U.S. – as the biggest player in the global financial system – needs to embrace them. Additionally, if Asia’s two largest emerging economies – China and India – both reject stablecoins, it is questionable how much traction they will gain.
Meanwhile, a new study by the digital assets exchange Gemini finds that crypto ownership in Singapore has fallen to 26% of the population from 30% in 2022. The study found that price volatility was an important reason that investors exited digital assets. 30% of Singaporeans surveyed said that they sold off their investments due to losses.
As for the reasons Singaporeans invest in digital assets, Gemini found that 46% do so for profits, while 41% Singapore buy them as a hedge against inflation.
Crucially, 49% of Singaporean respondents to the survey said that regulatory uncertainty is a barrier to investing in crypto. To that end, Singapore said last week that it would permit its two casinos to conduct cashless gaming under changes made to the Casino Control Act, but will not allow the use of cryptocurrencies. The Gambling Regulatory Authority “no intention of allowing cryptocurrency to be used as chips for casino gambling, as this presents money laundering risk,” Minister of State for Home Affairs and for Social and Family Development Sun Xueling said.