The Asian Countries That Actually Need A CBDC

At the recent Singapore Fintech Festival, the city-state’s announcement that it would pursue a wholesale central bank digital currency (CBDC) pilot next year was big news, and justifiably so. As Southeast Asia’s key financial center, Singapore’s monetary policy decisions usually have regional implications.

What the pilot will aim to assess is whether a digital fiat currency could help Singapore boost efficiency and speed in payments while lowering costs. While these are important considerations, the reality is that Singapore, like many developed economies, does not need a CBDC. It is an affluent country in which almost every adult has a bank account. Its digital financial ecosystem is advanced. For Singapore a CBDC is a “nice to have.”