The Monetary Authority of Singapore (MAS) announced today that it had approved the application of US-based Circle Internet Financial and its partner, US-based exchange and wallet service Paxos, to create and issue tokens known as the US Dollar Coin (USDC).

The move made Circle one of the first blockchain companies to receive approval from the MAS under new regulatory guidelines issued by the central bank.

The move marks the first time any major government agency has given regulatory approval to blockchain-powered digital currencies. As such, the decision is a milestone for cryptocurrencies as they seek to gain more mainstream acceptance.

"I strongly believe that every economy will eventually have its digital currency, which will facilitate low-cost payments with all the benefits we have come to expect from our Internet-based economy," said Ravi Menon, managing director at the MAS.

Consumers can use Circle and Paxos' stablecoins to make payments across the border in either direction.

"We are open to discussions. However, there are no specific plans to adopt cryptocurrency as legal tender or to supply one particular type of cryptocurrency.

Instead, our focus remains on encouraging Singapore financial institutions and payment companies to support fiat-crypto transactions. After that, we will evaluate whether using public blockchains should form part of MAS's coin policy going forward." Menon added.

Also Read: The CEO of Binance Says the Company Is 'Narrowing Down' the Hacker's Identity Responsible for a $570 Million Crypto Attack.