Singapore to explore with China a digital currency issued by the central bank
Singapore’s central bank and financial regulatory authority seeks to cooperate with China in the field of digital money issued by the central bank.
Ravi Menon, managing director of the Monetary Authority of Singapore, or MAS, has expressed the country’s readiness to establish close cooperation with China on digital currencies.
Speaking at a financial forum in Shanghai, Menon highlighted China’s progress in developing its digital currency issued by the central bank, or CBDC, known as the digital yuan. Singapore, which also is actively exploring blockcha-driven CBDCs, is seeking to exchange knowledge and experience with China, Sina Finance reported June 18.
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Menon would have said that CDB is currently a very hot topic, noting that Singapore and China’s central bank are discussing various scenarios for developing a CDB. Noting that the reasons for developing CDB vary by country, he emphasized that the main objective of Singapore’s CDB project is to reduce cross-border payment and settlement costs, reduce settlement time and ensure the security of transactions.
MAS official encourages more cooperation with Facebook’s Libra
At the event, Menon also mentioned Facebook’s problematic stablecoin project, Libra. He would have noted that Libra is a major challenge to the global central banking system, but the project also has „great flexibility,“ while the Libra team is committed to working closely with global regulators. „We should not reject the value of Libra, but we should have more discussions with them,“ Menon added. The official previously expressed a similar position to Libra in the summer of 2019.
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The Monetary Authority of Singapore has been working on its blockchain-driven interbank payment project since late 2016. Officially announced in 2018, the so-called „Project Ubin“ is a collaborative effort to explore the use of blockchain for payments and securities clearing and settlement.
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In June 2019, China’s central bank was reportedly rushing to launch its digital yuan before Facebook’s Libra. While China’s CBDC is reportedly already being tested in some cities, experts are confident that China can launch its digital yuan without citizens noticing the change.
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It was reported in mid-June that China is also planning a digital East Asian currency to gain more independence from the US dollar. The planned digital currency would include a basket of regional currencies such as the Chinese yuan, the Japanese yen, the South Korean won and the Hong Kong dollar.