Monetary Authority of Singapore Forms Project Guardian Group
The Monetary Authority of Singapore (MAS) has established a policymaker group called Project Guardian in collaboration with regulatory authorities from Japan, Switzerland, and the United Kingdom. The group aims to facilitate industry pilots for digital assets under MAS’ Project Guardian using regulatory sandboxes. It also seeks to promote discussions on the legal, policy, and accounting treatment of digital assets to establish a consistent regulatory framework across jurisdictions. Additionally, the group serves as a knowledge-sharing hub between regulators and the industry to support the responsible development of the digital asset ecosystem.
Singapore Leads in Digital Asset Jurisdiction
Singapore’s central bank introduced Project Guardian in 2022 to develop a regulatory framework and sandbox environment for experimenting with new digital asset applications while managing risks. The project has attracted participation from major financial institutions such as DBS Bank, JPMorgan Chase, and Standard Chartered Bank. The policymaker group will focus on responsible digital asset innovation in fixed income, foreign exchange, and asset management products. It will work towards developing common standards and regulatory frameworks that promote cross-border interoperability. FINMA will join the group as an observer.
MAS’ Updates on CBDC
The Central Bank of Singapore announced its exploration of digital currency in late 2021 but has not yet decided whether or not to issue a retail central bank digital currency (CBDC). MAS is collaborating with other central banks and organizations to explore the use of automated market makers for cross-border trading and settlement of wholesale CBDCs. The Mariana project utilizes a public blockchain to create a transnational FX interbank market for hypothetical wCBDCs. MAS has also collaborated with other institutions to issue a white paper on CBDCs, stablecoins, and tokenized bank liabilities.
Hot Take: Singapore’s Proactive Approach to Digital Assets
Singapore’s Monetary Authority is taking proactive steps to establish a clear regulatory framework and promote responsible innovation in the digital asset space. By forming the Project Guardian policymaker group and collaborating with international regulatory authorities, MAS aims to support the development and testing of new digital asset applications while ensuring a consistent approach across jurisdictions. Additionally, its exploration of CBDCs and participation in cross-border initiatives demonstrate Singapore’s commitment to staying at the forefront of digital currency developments. As the digital asset ecosystem continues to evolve, Singapore’s efforts will contribute to its position as a leading digital asset jurisdiction.
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