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Opinion
Andy Mukherjee

A Digital Singapore Dollar May Be Too Much of a Good Thing

The city-state is swimming against the tide, concerned that a central bank digital currency could over-succeed and undermine financial stability.

Singapore needn’t worry whether anyone would want its paperless cash. Just the opposite.

Singapore needn’t worry whether anyone would want its paperless cash. Just the opposite.

Photographer: Roslan Rahman/AFP/Getty

The world may be going crazy over digital currencies, but tiny Singapore is swimming against the tide.

The central bank has decided against offering a paperless version of the city-state’s legal tender — at least for now. Not because an electronic version of cash may flop, but because it’ll most likely be a hit. That could have consequences for the island’s financial stability and conduct of monetary policy. Even if those risks are manageable with in-built safeguards, why rock the boat?