A recent report by Seedly and Coinbase conducted in the fourth quarter of 2023, involving over 2,000 adults, reveals that over half of finance-savvy Singaporeans view cryptocurrency as the future of finance and have already invested in digital assets.
According to the report, 57% of respondents currently hold digital assets, with the majority having invested between US$1,000 and $25,000.
Among crypto users in Singapore, “staking” has emerged as a popular activity, with 55% of respondents engaging in staking through centralized exchanges and 38% utilizing decentralized finance (DeFi) apps. Staking allows crypto holders to earn rewards by allocating their holdings to validate transactions on proof-of-stake blockchains like Ethereum, offering a low-risk passive income strategy without active trading.
The significant level of staking activity underscores the importance of providing consumers with reliable, regulated choices and enhancing consumer protection. Regulating delegated staking through centralized services or exchanges would differentiate it from lending products masquerading as staking and ensure constant consumer asset protection.
Despite occasional market volatility, Singaporeans remain optimistic about the long-term potential of crypto, with 56% believing it to be the future of finance and 46% expecting price increases over the next 12 months.
The survey also indicates that 54% of respondents use stablecoins, while 35% utilize crypto for remittances. Coinbase expressed encouragement by the survey results, reaffirming its belief in the power of decentralized technologies to broaden access to financial services and shape the future of finance.
Singapore has been actively engaging with global financial authorities in the realm of digital currencies. In September 2023, the Monetary Authority of Singapore (MAS) conducted a joint test of cross-border trading and settlement of wholesale central bank digital currencies, aiming to stay at the forefront of digital currency innovation.
Additionally, plans were revealed to impose a trust requirement on cryptocurrency exchanges to instill confidence in the market and protect investors from potential losses. Guidelines are also being refined to cover stablecoins, transferable gaming or streaming credits, and non-fungible tokens (NFTs), reflecting Singapore’s commitment to fostering a robust and regulated crypto ecosystem.
