Bitcoin crossing the $100,000 mark is a global headline, but nowhere is it more celebrated than in Singaporemineral. The city-state, known for its wealth and tech-mindedness, has been years ahead in cryptocurrency adoption. It didn’t happen by luck.
A well-planned combination of infrastructure, regulatory clarity and incentives made Singapore the place for crypto while others like China and India held off.
According to Henley & Partners, Singapore tops the global cryptocurrency adoption index. Tax breaks, regulatory frameworks and a central bank willing to experiment with a digital Singapore dollar are part of the game plan.
But not everything has been easy. In March 2022, Charles & Keith, a local fashion brand, made headlines by accepting crypto payments. No one knew that this move coincided with the beginning of Crypto Winter.
The collapse of Terraform Labs, led by Singapore’s own Do Kwon, started the avalanche. Things only got worse with the implosion of Sam Bankman-Fried’s FTX. The domino effect shook even Singapore’s largest state-linked entities.
Singapore’s resilience in the crypto winter
Despite the chaos, Singapore refused to flinch. While others abandoned ship, the Monetary Authority of Singapore (MAS) redoubled its efforts in building the infrastructure needed for a crypto future.
More than 30 companies, including US giants such as Coinbase and Ripple, as well as Hong Kong-based Futu, are now licensed to offer digital token services under the MAS framework.
Meanwhile, a survey by the Independent Reserve earlier this year revealed that 40% of Singaporeans are cryptocurrency investors. This adoption is not limited to Generation Z. Baby Boomers and Generation X are joining in, helped by the approval of Bitcoin spot ETFs in the US.
Still, the MAS plays cautiously. Retail investors cannot buy spot Bitcoin ETFs and cryptocurrency listings remain prohibited.
The seemingly unstoppable bull run has reignited enthusiasm. With ‘crypto president’ Donald Trump returning to the White House in 2025, speculation is rife that pro-crypto policies in the US could propel Bitcoin to even greater heights. Singapore’s well-prepared ecosystem is ready to ride that wave.
Economic growth and crypto synergy
Bitcoin’s rally comes as Singapore’s economy shows great strength. Inflation fell to 1.4% in October, down from 2% in September. Core inflation, which excludes volatile categories such as rent and transportation, also declined to 2.1%.
According to the MAS, the lower prices of electricity, gas and clothing played a role. The Singapore dollar, already a strong currency, appreciated slightly to 1.34 against the US dollar after inflation. report.
While inflation cools, Singapore’s GDP is warming. Third quarter growth reached 5.4% year-on-year, exceeding previous estimates of 4.1%. This is the fastest growth Singapore has experienced since late 2021. Officials have revised annual growth projections for 2024 to 3.5%, up from the previous range of 2% to 3%.
Unlike most countries, Singapore does not rely on interest rates to control its economy. Instead, MAS manages the Singapore dollar exchange rate within a policy band.
By adjusting this band, the central bank keeps inflation under control while maintaining economic growth. It’s a system that works and it’s one of the reasons the country can afford to take calculated risks with cryptocurrencies.
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