Singapore’s central bank will give financial institutions room to experiment with new technologies as it seeks public feedback on how a “regulatory sandbox” could work, Managing Director Ravi Menon said.
The responsibility to assess any risks in the adoption of new financial technologies lies with the boards and management, he said at a conference on Saturday. It’s impossible to anticipate every vulnerability when new technologies are adopted, he said.
“The idea is not to remove all risk,” he said. “Failure is an inherent part of innovation.”
The Monetary Authority of Singapore will work with financial institutions to create an environment that makes it possible for experiments to fail “safely and cheaply” without major consequences, he said, without giving a time frame for the public consultation.