MAS Launches New Programs, Including Live Wholesale CBDC Trials in Singapore

The Monetary Authority of Singapore (MAS) Announces Initiatives for Digital Money

The Monetary Authority of Singapore (MAS) has unveiled initiatives to ensure the safety and innovation of Digital Money, along with Wholesale CBDC and Singapore dollar infrastructure development.

MAS announced the update on Thursday, November 16, promoting three major initiatives, which include wholesale CBDCs, tokenized bank liabilities, and regulated stablecoins.

MAS To Enable Live Wholesale CBDC Trials

For the settlement, MAS has introduced three key initiatives to promote the safe and innovative use of digital money in Singapore. These include a blueprint for a digital Singapore dollar infrastructure for rooting. Along with that, expansion of digital money trials, and plans to issue a “live” central bank digital currency (CBDC) for wholesale settlement.

Inspired by Project Orchid, the trials will involve tokenized bank liabilities, wallet interoperability, supplier financing, and institutional payment controls. These factors are essential to test the applicability of Purpose Bound Money (PBM) and digital money.

CBDC For Wholesale Bank Settlements and Issuance

In addition to retail and corporate trials, MAS will begin developing a CBDC for wholesale interbank settlement in the next year. The “live” issuance of wholesale CBDCs will be a pilot for retail payments between commercial banks to ensure potential application in cross-border securities trade settlement.

Ravi Menon, Managing Director of MAS highlights the issuance of wholesale CBDC as a significant milestone, reinforcing the role of central bank money in facilitating safe and efficient payments. Singapore, France, Switzerland have successfully tested cross-border wholesale digital currency while Kazakhstan has started its pilot CBDC program.

Hot Take: The Future of Digital Money in Singapore

MAS’s initiatives represent significant progress towards establishing a safe and innovative environment for digital money in Singapore. With plans for live trials and issuance of wholesale CBDCs, MAS is laying the groundwork for the future of digital money in the country. As other nations also explore their own CBDC programs, it’s clear that this technology is set to revolutionize financial systems around the world.