No compelling reason for central banks to issue digital currencies: MAS

THERE is no compelling reason for central banks to issue digital currencies, said managing director of the Monetary Authority of Singapore (MAS) Ravi Menon.

Speaking to The Business Times, Mr Menon said that it remains unclear what problem digital currencies would solve, noting that embracing more electronic payments of fiat currencies would instead generate real economic benefits from reducing the cost of cash transactions, and in bringing greater convenience.

But if central banks issue digital currencies, people end up holding a large part of their wealth as a direct liability of the central bank.