Economic Affairs

The brave new world of digital currencies

The risks outweigh the benefits, say experts

Imagine this: One day, the Monetary Authority of Singapore (MAS) decides to issue its own digital currency for use by residents. High-denomination currency notes (S$50 notes and above) are abolished.

You are invited to open a bank account at the MAS. You are offered a rate of interest slightly higher than those available at commercial banks because the MAS saves a lot of money by no longer having to print, store and transport so much cash - it decides to share these savings with its depositors.

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A version of this article appeared in the print edition of The Straits Times on November 21, 2018, with the headline 'The brave new world of digital currencies'. Print Edition | Subscribe