The Monetary Authority of Singapore (MAS) has unveiled several initiatives that have been developed to ensure the achievement of such a goal as the safe and responsible use of digital money in this country.
The mentioned organization last Thursday, November 16, published a press release, which contains information that the specified initiatives provide for the development of the infrastructure of the virtual Singapore dollar, the expansion of trial versions of digital means of payment, and the release of CBDC. The set of these proposals was called the plan Orchid.
MAS promotes three forms of digital money, including wholesale CBDC, tokenized bank liabilities, and regulated stablecoins. The press release of this organization indicates that the Orchid plan, published on Thursday, describes the technological infrastructure, the functioning of which will facilitate the process of making transactions using virtual currency for consumers. The initiatives proposed in this case define the main building blocks for the responsible circulation of digital money in Singapore.
One of the most important mentioned building blocks is the settlement ledger. In this case, it means a tool for fixing digital money transfers with functions such as atomic settlement with virtual tokens and built-in programmability. The second building block is the tokenization bridge, which connects existing account-based settlement systems with ledgers compatible with tokenized forms of digital money.
MAS initiatives also envisage the launch of a programmability protocol that will determine the conditions for using virtual means of payment. The naming service will convert wallet addresses into readable and meaningful alternative name identifiers for verification.
The press release also contains information that MAS will expand the testing of digital money in Project Orchid. Moreover, this organization plans to develop a CBDC for wholesale interbank settlements next year, which will mean the first so-called live issue of this category of currency.
As we have reported earlier, Citi Launches Blockchain Solution for Foreign Exchange Trades.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
