Tokenization of financial assets and other digital money transfer infrastructure is part of the larger goal of the experiments.
Thursday, the Singaporean central bank declared its intention to launch a “live” CBDC for wholesale settlement, as reported by the Monetary Authority of Singapore (MAS).
The Monetary Authority of Singapore (MAS) has said that this strategy is a subset of a larger attempt to establish the groundwork for a digital Singapore currency and to increase the number of trials of asset tokenization.
A new series of four trials involving industry stakeholders aims to evaluate key components of MAS’s Orchid Blueprint, which lays out the technical infrastructure necessary for digital money transfers in the future. The bank has announced that one of its initiatives, which involves exploring tokenized bank liabilities for retail payments, would be piloted at the current Singapore FinTech Festival 2023.
“In the next year, MAS will begin developing CBDC for wholesale interbank settlement, which will supplement the digital money experiments conducted by the financial sector with both retail and corporate customers. After previously simulating issuance inside test settings, MAS will now pilot the first-ever “live” issuance of wholesale CBDCs,” according to the release.
The possibility of wholesale CBDC usage has previously been investigated by Singapore. Also, in order to keep up with the latest innovations in payment systems, international bodies have approved nations to start drafting laws and building infrastructure to issue digital equivalents of fiat currencies. Even if MAS Managing Director Ravi Menon labelled cryptocurrency “a failure on Thursday,” several nations see CBDCs as a solution to private crypto.
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