December 10, 2025
By Our Correspondent
Singapore must act boldly—starting with a digital Singdollar—if it wants to retain its edge as a global financial centre, former DBS chief executive Piyush Gupta said on Dec 8.
Speaking at an Institute of Policy Studies lecture at the National University of Singapore, Gupta argued that while the city-state has made progress in blockchain and tokenisation experiments, it risks falling behind unless it accelerates real-world adoption.
“Singapore is small enough to be nimble, but big enough to matter,” he said. “It is one of the most stable countries in the world, yet one of the most innovative. This future is ours for the taking.”
Blockchain Pilots But Limited Retail Access
Gupta noted that Singapore has launched several pilots—such as the Monetary Authority of Singapore’s (MAS) experiments with tokenised deposits, purpose-bound money and wholesale central bank digital currency (CBDC). But these remain at a “proof-of-concept” stage, he said.
A blockchain is a secure, distributed database that records transactions and tracks assets across a network. Tokenisation converts sensitive data into secure digital tokens, enabling faster and more transparent transactions.
Despite DBS being one of the world’s first banks to create a digital exchange for trading digital assets, the bank was not allowed to expand access to retail customers, Gupta said. MAS’ caution is deliberate, he added, rooted in a desire to protect consumers even as it recognises the transformative potential of blockchain technologies.
Still, consumer adoption is moving ahead on its own: 26% of Singapore residents now own digital assets, Gupta noted.
Global Shifts: Stablecoins and the New Infrastructure of Money
Gupta pointed to global regulatory trends such as the US’s Genius Act, which outlines a framework for payment stablecoins. Banks like JP Morgan now allow customers to link their bank accounts to Coinbase crypto wallets—signalling a shift toward mainstream adoption.
Stablecoins—digital tokens pegged to a stable asset like the US dollar—can support faster, cheaper payments compared to traditional rails.
To remain competitive, Gupta argued, Singapore must take the next step: launching a digital Singdollar.
Why Singapore Needs a Digital Singdollar
A common digital Singdollar—whether a stablecoin or a retail CBDC—would allow seamless payments across any wallet or card system, Gupta said. If a merchant does not offer a preferred payment method, a digital Singdollar would “flow freely” across platforms, removing friction.
“The launch of a digital Singdollar would further entrench Singapore’s reputation as a leading global financial centre,” he said. “It would signal that the country is ahead of the game and ready for a tokenised future.”
It would also serve as a defensive measure, protecting against potential capital flows into US dollar stablecoins.
Transforming Capital Markets Through Tokenisation
Gupta said Singapore’s capital markets still face inefficiencies, including long settlement periods, high intermediation costs, and manual processes prone to error. Tokenisation could overhaul the entire value chain—from issuance and settlement to asset servicing—by reducing reliance on intermediaries.
He also highlighted the potential for real-world asset tokenisation, such as real estate, which could open new markets and make ownership verification simpler and more transparent. But doing so will require regulatory shifts and coordination between banks, law firms, regulators and real estate players.
A Leap of Faith Is Needed
Advanced technologies could make financial systems more efficient and resilient, but there are risks, Gupta acknowledged. “There could be a 50 per cent chance that the world embraces this completely, and a 50 per cent chance that it doesn’t,” he said. “But the changes underway are massive—and Singapore must take a leap of faith.”
Singapore has already demonstrated what bold, coordinated action can achieve, he said, pointing to the success of FAST transfers and PayNow in the last decade.
“With the right partnerships, vision and infrastructure, Singapore can once again shape the future of finance,” Gupta concluded. “We should not wait for global alignment. Moving now will give us a distinct first-mover advantage.”
