The Monetary Authority of Singapore recently revealed that it is exploring the idea of creating a new person-to-person payments system that would enable citizens to pay each other using a mobile number, email address or social media account, according to local reports.

The authority said it is thinking about creating such a system due to the recent rise of financial technology in Signapore and worldwide.

"The financial industry is facing many headwinds: slower economic growth; narrower margins; tighter regulation; and greater competition from outside," Ravi Menon, managing director of the authority, said in a speech. "Fintech can potentially help the financial industry regain its dynamism and at the same time purposefully serve the economy and the people."

Menon did warn about regulation pontentially stifling innovation in Singapore.

"MAS applies a materiality and proportionality test," he said. "This means when the risk posed by new technology becomes material, then regulation comes in. And the regulation must be proportionate to the risk posed."