Stablecoin Payments in Singapore Hit Record High in Q2, Approaching $1 Billion

Stablecoin payments in Singapore hit a record high of nearly $1 billion in the second quarter, driven by merchant transactions, according to a report from Chainalysis on Wednesday.

Eric Jardine, Cybercrimes Research Lead at Chainalysis, believes that businesses in Singapore are attracted to stablecoins. It is because of their “efficiency and low cost.” Users can now utilize Singapore’s XSGD stablecoin, along with Bitcoin, Ether, Circle USD, and Tether, to pay for various services.

Decoding Stablecoins

A type of cryptocurrency designed to maintain a stable value, stablecoins are mostly pegged to a fiat currency like the U.S. dollar. People often use stablecoins for crypto trading, making them less volatile than traditional cryptocurrencies like Bitcoin and Ethereum. This stability, along with other benefits of blockchain technology like speed and lower transaction costs, makes stablecoins a more preferred option.

Jeroen Hesp, a notable crypto entrepreneur, commended stablecoins for their ability to “revolutionize” money transfers. According to him, stablecoins helped move over $3 trillion worth of value in Q2 of 2024, making it the fastest growing sector in crypto right now.

Singapore has stepped up its efforts concerning digital assets, concentrating on the advantages of blockchain technology. Last year, the Monetary Authority of Singapore (MAS) announced a regulatory framework to bring about a high value of stability for stablecoins.

The MAS shared that its regulatory framework will apply to single-currency stablecoins (SCS) pegged to the Singapore dollar or any G10 currency issued in Singapore. Organizations issuing the SCS will have to fulfill requirements regarding several key areas. These include value stability, capital, redemption at par, and disclosure.

Only those issuers who fullfill all of these requirements can apply to the MAS for their stablecoins to be recognized. According to the MAS, this label will allow users to easily identify stablecoins regulated by the MAS, distinguishing them from other digital payment tokens, including unregulated stablecoins.

Singapore’s Growth as a Crypto Market

The Shib Daily reported earlier about Singapore’s forward-looking stance in the casino industry. It recently approved cashless gaming transactions, however it will not allow any crypto transactions yet.

Reflecting a more supportive stance on cryptocurrency, cryptocurrency exchange OKX has just acquired a full license in Singapore, known as the Major Payment Institution (MPI) license, allowing crypto trading and cross-border transactions.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

Post Views: 158