Monetary Authority of Singapore Recognizes Bitcoin in FinTech Investment

The Monetary Authority of Singapore (MAS) has recognized Bitcoin and its Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology as major trends affecting finance, and pledged $225 million to help develop the technologies behind these trends.

MAS Managing director Ravi Menon announced the Financial Sector Technology & Innovation initiative during a speech titled, "A Smart Financial Centre." He expressed aspirations for the city-state to become a Smart Nation by leveraging the most influential FinTech developments.

When discussing the evolution of electronic money, he commented:

"In the 1990s, we thought that electronic money would replace cash and cheques. That has not happened. In most parts of the world, including the US, Japan, Europe, and Singapore, notes and coins in circulation outside banks has been increasing steadily every year. In 2000, some of us were quite sure that Internet-only banks would eventually replace brick-and-mortar branches. This too has not happened."

However, he said, "there is reason to believe that this time is different: that technology will indeed transform financial services in a way that has not happened before."

He went on to describe to importance of mobility in financial services, before outlining six major trends transforming the world of finance: (1) mobile and digital Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term, (2) authentication and biometrics, (3) blockchains and distributed ledgers, (4) cloud computing, (5) big data and (6) learning machines.

He outlined the benefits of Bitcoin's ledger system: faster and more efficient processing, lower cost of operation and greater resilience against system failure.

He also commented on other systems such as Ripple, which "offers a solution, based on distributed ledgers, for real-time gross settlement, currency exchange, and remittance."

Distributed ledgers can have practical use in non-financial applications, he pointed out, naming Factom's land registry project in Honduras as an example.