ledgernoise.com
Daily Crypto News

Singapore Central Bank to Start ‘Live’ Wholesale CBDC Trials


The Monetary Authority of Singapore (MAS) plans to issue a “live” central bank digital currency (CBDC) for wholesale settlement, the central bank announced on Thursday.

MAS said that the plan is part of a broader set of initiatives aimed at expanding trials of asset tokenization and setting up the infrastructure for a digital Singapore dollar.

MAS’ Orchid Blueprint sets out the technology infrastructure required for digital money transfers in the future, and a new set of four trials involving industry players looks to test various components. One, looking at tokenized bank liabilities for retail payments, will first be trialed at the Singapore FinTech Festival 2023, happening now, according to the bank.

“To complement the digital money trials by the financial industry involving retail and corporate users, MAS will commence the development of CBDC for wholesale interbank settlement next year. MAS will pilot the “live” issuance of wholesale CBDCs for the first time, after previously simulating issuance within test environments,” the statement added.

MAS’ first wholesale CBDC pilot will settle retail payments between commercial banks, while future tests could look at cross-border settlements.

Singapore has already been exploring CBDCs for wholesale use. At the same time, countries have been given the go-ahead by international organizations to prepare legislation and infrastructure for issuing digital versions of fiat currencies to stay on top of payment innovation. Some countries also view CBDCs as an answer to private crypto, with MAS Managing Director Ravi Menon calling cryptocurrencies “a failure on Thursday.”

“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,” Menon said in a press statement.



Read More: Singapore Central Bank to Start ‘Live’ Wholesale CBDC Trials

Disclaimer:The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other sort of advice and you should not treat any of the website’s content as such. NewsOfBitcoin.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.