Today the Monetary Authority of Singapore (MAS) outlined its digital money vision. It includes wholesale central bank digital currency (wholesale CBDC), tokenized bank liabilities, and regulated stablecoins. The notable absence is a retail CBDC. MAS published a paper on its retail CBDC trials, Project Orchid. However, the focus is more on the other two forms of digital money. We cover that in a separate article.
Regarding the wholesale CBDC, the first use case is to enable interbank settlement for tokenized deposits. Local banks OCBC and UOB will be the first to test retail payments using each other’s tokens and demonstrated this at the Singapore Fintech Festival. It appears Singapore will allow banks to rely on each other’s KYC processes.
Apart from interbank payments, MAS also plans to trial wholesale CBDC for cross border securities settlement.
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