Singapore, the little red dot, has never been a country of modesty. We’ve created the most dynamic economy on the planet and a magnetic power in innovation and strategic foresight. More importantly, are we actually prepared to capitalize on the huge opportunity that Web3 has to offer? Liang Hua’s recent comments take the cake. Today, web3 adoption is moving past the crypto bubble and entering traditional businesses in sectors like logistics, finance, education and health care. Let's be real: hype is a dangerous drug.
The potential for economic growth is undeniable. Now picture this — a Singapore where decentralized finance (DeFi) evolves into a genuine competitor to conventional banking services. This change powers greater innovation and attracts international investment capital. Now, picture this with decentralized peer-to-peer lending platforms, like Aave and Compound supporting your local businesses. Imagine decentralized exchanges such as Uniswap and Curve allowing Singaporeans to trade in global markets without the high fees.
Here's the catch: it's not that simple. We should not simply put on our Web3 glasses and fall for the hype. Singapore needs a strategic, well-regulated approach. We need to ask tough questions. What do you do when a smart contract fails, erasing all of its shareholders’ millions in investments? How do we prevent consumers from getting scammed and defrauded in the decentralized wild west? Maybe most importantly, how do we make sure that Web3 is available and serves all Singaporeans equitably—not just to the tech elite?
Remember the dot-com bubble? We cannot afford to repeat those mistakes.
It’s here that Singapore’s true strength can be found — in the careful balance of innovation against stability. Tokenization of assets – turning real estate, intellectual property, even art into blockchain-based tokens – would be revolutionary. Think fractional ownership of coveted Orchard Road retail space, democratizing access to smaller investors. If RealT can do this with real estate already, why not Singapore? This is where Singapore’s deep financial infrastructure and regulatory expertise can make a formidable competitive difference. Let’s make the U.S. the global hub for tokenized assets! In doing so, we will make a more compelling case for investment and job creation.
Caution is key. First we need concrete guidance on the legal and regulatory issues surrounding tokenization. CARD Act hash out challenges around valuation, security and protecting investors.
Let's talk about decentralized identity (DID). In a global climate deeply focused on data privacy, the empowerment of individuals to truly own their digital identity is essential. This means Singapore is in a great position to lead the conversation in creating DID standards and infrastructure. Now imagine that same Singaporean citizen using their decentralized identity. With this technology, they safely access government services, control their healthcare records, and vote online—all without having to rely on any central provider. Whether it’s Microsoft’s ION, Civic, or Polygon ID, these real-world implementations hint at how this technology will soon revolutionize our world. Singapore has no choice but to take the lead in this revolution!
We must acknowledge the risks. Decentralized identity raises important issues of security, recovery, and potential misuse. Along with that, we need to create countermeasures that establish clear, understandable, transparent identity verification, fraud prevention measures and accountability.
Liang Hua exemplifies 14 use cases that are more than just theory. These issues are very real opportunities for Singapore to further solidify its position as a global economic powerhouse. We need to be attentive to Web3’s pull. Let’s draw on this momentum to recommit ourselves to responsible regulation and establish a clear vision for how it can be a positive force for all Singaporeans.
Now is the time for Singaporean industry leaders, public servants, and researchers to collaborate and craft a whole-of-nation Web3 playbook. For Singapore, we should aim to find the best use cases that suit Singapore’s strengths and priorities. Specifically, we need to invest in research and development. We also need to ensure that we are building a regulatory environment that encourages innovation, but equally protects consumers and businesses.
The economic goldmine is in armor for the taking. But only if we dig smart.
However, we must acknowledge the risks. Decentralized identity also presents challenges related to security, recovery, and potential misuse. We need to develop robust mechanisms for verifying identity, preventing fraud, and ensuring accountability.
Singapore: Lead, Don't Just Follow
The 14 use cases Liang Hua highlights are not just theoretical possibilities; they are real opportunities for Singapore to solidify its position as a global economic leader. But we must approach Web3 with a healthy dose of skepticism, a commitment to responsible regulation, and a clear vision for how it can benefit all Singaporeans.
It's time for Singaporean businesses, policymakers, and academics to come together and develop a comprehensive Web3 strategy. We need to identify the specific use cases that align with Singapore's strengths and priorities. We need to invest in research and development. And we need to create a regulatory environment that fosters innovation while protecting consumers and businesses.
The economic goldmine is there for the taking. But only if we dig smart.
