Crypto-Friendly Country Singapore’s New Head of State’s Cryptocurrency Views Come as a Surprise

A new president has been elected in Singapore, and he is not a fan of cryptocurrencies.

Former finance minister and central bank governor Tharman Shanmugaratnam, who once called crypto “purely speculative” and “a little crazy,” won Saturday’s presidential election with 70.4% of the vote.

Shanmugaratnam, 66, will replace Halimah Yacob, the country’s first female president, in a largely symbolic role with no executive power but some influence on policy matters.

Singapore is one of the most crypto-friendly jurisdictions in the world, with a vibrant ecosystem of startups, exchanges and investors.

Shanmugaratnam’s views on crypto have evolved over time, but he has always maintained a cautious and skeptical stance. In 2018, he said there was no need to ban crypto as it did not pose any threat to the financial system. In 2023, he said crypto was “purely speculative in nature and actually a bit crazy” and suggested authorities provide “ultra-clarity” on the risks involved.

In 2021, he acknowledged that there could be a role for crypto in future finance beyond speculation and illicit activities, and said he envisioned a future where regulated stablecoins could play a useful role in the payment system.

He noted that in 2022, the central bank is reviewing its approach to regulating stablecoins and may introduce reserve requirements for stablecoin issuers.

*This is not investment advice.