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In a latest development, Singapore plans to reduce the role of cash and checks in its economy by encouraging banks to switch to digital payments.
For consumers and business,the use of cash for daily payments is high.
An average of 12.7 checks were written per person in Singapore in 2014, compared with practically none in Sweden, he added. This costs Singapore about S$2 billion ($1.5 billion) per year, mostly for storage and processing.
The country is aiming to be a hub for the financial technology industry in Asia, in an attempt to bolster its economy, create jobs and cement its position as a regional banking center.
The MAS is asking the country’s banks to pass on to their customers the full cost of paper-intensive services, such as the processing of checks, to encourage them to switch to digital payments.
The MAS also wants to see a majority of those transactions made using cellphones, or national ID or other secure numbers, rather than bank account numbers, over the next year.