Singapore’s DPM reiterates warnings on the risks of investing in crypto
The DPM also revealed plans by the government to spur the development of quantum technology.
The DPM said that the MAS has consistently warned the public against trading in cryptocurrencies. Image source: Unsplash.
The crypto asset space is constantly evolving but remains a highly risky area said Deputy Prime Minister and Coordinating Minister for Economic Policies, Heng Swee Keat, at the Asia Tech X Singapore Summit.
Speaking of the recent losses suffered by investors due to the meltdown of TerraUSD and Luna, which triggered knock-on effects on Bitcoin and other cryptocurrencies, the minister stressed that, “Retail investors especially should steer clear of cryptocurrencies.”
But, despite the risks, it also has the potential to transform the future of finance. This is where the Government has to continue to adapt local rules to ensure that regulation remains facilitative of innovation while still addressing the key risks that crypto-assets pose.
For example, the MAS has granted licences and in-principle approvals in the past 2 years to 11 digital payment token service providers, including stablecoin players like Paxos, crypto exchanges like Coinhako, and traditional financial institutions like DBS Vickers.
One new project with this in mind is Project Guardian. Led by the Monetary Authority of Singapore (MAS), it is a collaborative effort by MAS to partner with the industry to explore the tokenisation of financial assets and develop the future of financial infrastructure. The first industry pilot will be to explore potential Decentralized finance (DeFi) applications in wholesale funding markets.
Building out Quantum computing excellence
Quantum computing is a key research area for the Singapore Government. Image source: Pixabay.
One key research area under the Singapore Government’s national R&D plans is Quantum computing.
Quantum computing refers to the use of quantum mechanics and qubits that a system uses to calculate outputs. The Quantum Engineering Programme (QEP) 2.0 was set up to apply quantum technology to solve real-world challenges and develop Singapore’s quantum engineering capabilities.
Two new national quantum programmes under the QEP were launched at the ATxSG Summit:
- The National Quantum Computing Hub (NQCH)
- The National Quantum Fabless Foundry (NQFF)
The NQCH will strengthen local talent development and enable researchers to explore how quantum computing can support industries such the finance and chemical sectors. The NQFF will support micro and nanofabrication of quantum devices.
As part of the development of the National Quantum Safe Network (NQSN) for Singapore, IMDA, alongside Institutes of Higher Learning, industry and research partners will collaborate on the operation and implementation of NQSN on Singapore’s fibre network infrastructure.
This programme seeks to deploy commercial quantum-safe communication technology in Singapore’s energy grids and other critical networks, as well as for the handling of sensitive data, including those related to healthcare and finance.
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