Singapore’s Blockchain Ecosystem –An Industry Report
Driving towards a decentralized world: A glimpse into Singapore’s vibrant and diverse blockchain landscape.
Why Are Countries Competing to Attract Blockchain and Crypto Industry?
According to the IMDA’s Future Of Services report, the blockchain market in Singapore has the potential to achieve a market spending of up to US$272 million in 2022 and up to US$2.6 billion by 2030 with a compound annual growth rate of 32.5%.
Similarly, Gartner predicts that blockchain’s business value-add will grow to slightly over US$360 billion by 2026 globally, then surge to more than US$3.1 trillion by 20304. In the longer term, projections indicate that the global blockchain market is expected to grow from US$212 million 2016 to US$8,683 million by the end of 2024, at a compound annual growth rate (CAGR) of 59.04%. Overall, the potential value creation from blockchain technology will be immense, such that countries around the world such as Singapore, Malta, Hong Kong, Switzerland, and more have committed to embracing blockchain companies — and to a lesser extent cryptoassets.
What is the Singapore Ecosystem Blockchain Report?
ConsenSys examined the blockchain innovation landscape in Singapore across three broad domains — finance, healthcare, and smart solutions. The report explores various case studies in each domain to illustrate how blockchain is being used to create value. For example, licensed securities exchanges in Singapore are using blockchain to create liquidity in the private markets.
As companies refrain from public offerings to pursue longer private life cycles, the need for capital efficiency and liquidity in private markets also becomes more pressing. Harnessing big data in the public sector has enormous potential, too. Decentralized patient records on the blockchain can offer greater security against data breaches, as well as faster processing of insurance benefit claims. The research offers three key insights.
Key Insights from the Report:
1. Singapore’s Regulatory Environment is Primed for Blockchain Experimentation
Singapore has maintained a regulatory environment that has been consistently pro-enterprise and supportive of emerging technologies like blockchain. For over a decade, Singapore has ranked among the top three countries on the World Bank’s Ease of Doing Business Index. Generous government grants exist to encourage companies to adopt new technology and expand globally. The Singapore Government also launched the Smart Nation Initiative in 2014 to create solutions that will change the country using infocomm technologies, networks, and big data.
Additionally, the Monetary Authority of Singapore (MAS) actively encourages experimentation by partnering with private industry in experimenting with cross-border payments using blockchain and distributed ledger technology. As early as 2016, the MAS established a regulatory sandbox to enable Financial Institutions (FIs) and other companies startups to experiment with innovative Fintech solutions in an environment where actual products or services can be offered to users within a well-defined space and duration.
Innovators in the regulatory sandbox stand to enjoy relaxed regulatory requirements which they would otherwise be subject to. Singapore’s transparent, open and forward-looking regulatory strategy of “running alongside innovators” balances the need for regulatory oversight while embracing the upsides technological advancement.
Read the other insights and the rest of the report at the official ConsenSys Blog.
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