MAS chief says stablecoins may not suit large wholesale settlement
CIE News ·
Monetary Authority of Singapore head Chia Der Jiun stated that stablecoins may be unfit for large wholesale settlement, favoring central bank digital currencies and deposit tokens instead, blockhead.co reported.
Monetary Authority of Singapore Managing Director Chia Der Jiun stated on October 9, 2026, that stablecoins may be unsuitable for settling large wholesale transactions because they cannot be assumed to maintain par value, according to blockhead.co. Speaking at a summit, Chia explained that bank deposits maintain parity through exchangeability with central bank reserves, whereas stablecoins rely on reserve transparency and adequacy. He noted that stablecoins may instead see adoption on crypto exchanges and fintech apps, while central bank digital currencies and deposit tokens remain suited for wholesale banking. The remarks come as an MAS consultation on Payment Services Act amendments closes on October 16, 2026.