Singapore's MAS reveals plan to issue 'live' CBDC for wholesale settlement

cyptouser3 weeks agoCryptocurrencies News14

The Monetary Authority of Singapore (MAS) is planning a pilot program where it would issue a “live” central bank digital currency (CBDC) for wholesale interbank settlement next year, according to a Nov. 16 statement.

“The first pilot will involve the use of ‘live’ wholesale CBDC to settle retail payments between commercial banks,” MAS said. “Future pilots could include the use of ‘live’ wholesale CBDC for the settlement of cross-border securities trade.”

MAS Managing Director Mr. Ravi Menon emphasized that the issuance of wholesale CBDC reinforces the pivotal role the central bank plays in facilitating secure and efficient payments. He said:

“The ‘live’ issuance of central bank digital money for use as a common settlement asset in payments is a significant milestone in MAS’ digital money journey that began in 2016. The issuance of wholesale CBDC reinforces the role that central bank money plays in facilitating safe and efficient payments.”

Meanwhile, the development is part of three initiatives that would ensure the safe and innovative use of digital money in Singapore, which includes the Orchid Blueprint and digital money trials.

Singapore’s digital money initiatives

The Orchid Blueprint is an initiative designed to foster the innovative application of digital currency within the country by delineating the necessary technological framework to facilitate Singapore’s adoption of digital currency.

This blueprint builds upon insights from the Project Orchid industry trials, focusing on promoting wholesale CBDCs, tokenized liabilities, and regulated stablecoins.

Under the digital money trials, the authorities would test the broad applicability of Purpose Bound Money (PBM) and digital money in Singapore, with the MAS expanding its trials into tokenized bank liabilities, wallet interoperability, supplier financing, and institutional payment controls.

These trials involve retailers and traditional financial entities like the Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB). Other participants include Ant International, Fazz and Grab, Amazon, HSBC, and J.P. Morgan.

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Vitalik considers implications of adding ZK-EVM, other features to Ethereum mainnet

Ethereum founder Vitalik Buterin recently wrote an in-depth blog post exploring the question of whic...

Hodlnaut files wind up order in preparation for liquidation

Singapore-based Hodlnaut filed a wind-up order with the court on Nov. 10 as it prepares for a full l...

Hong Kong to retain grace period for crypto firms despite recent scandals

Hong Kong’s financial regulators have decided to retain the grace period for crypto firms desp...

Incoming Tether CEO Paolo Ardoino promises real-time reserve transparency

Paolo Ardoino, Tether’s incoming CEO, said the stablecoin issuer plans to publish real-time at...

SEC partisan divide could alter Bitcoin ETF approval odds, former SEC attorney predicted

According to former SEC attorney John Reed Stark the current SEC, under the chairmanship o...

Friend.Tech bolsters security as more users report SIM-swap attacks

The decentralized social media protocol, FriendTech, has responded to the recent surge in SIM-swap a...