Singapore launches expanded initiative for cross-border usage of digital currency

Singapore, November 4 : The Monetary Authority of Singapore has launched an expanded collaboration with international partners on cross-border foreign exchange settlement using wholesale central bank digital currency (CBDC).
The enhanced initiative is named Ubin+, which will strengthen Singapore's capabilities to use digital currency-based infrastructure for cross-border transactions.
According to a statement by the Singaporean central bank on Thursday, the platform will study business models and governance structures for cross-border foreign exchange settlement, where atomic settlement, based on digital currencies, can improve efficiencies and reduce settlement risks compared to existing payment and settlement rails.
It is aimed to develop technical standards and infrastructure to support cross-border connectivity, interoperability, and atomic settlement of currency transactions across platforms using distributed ledger technology (DLT), and non-DLT-based financial market infrastructures, the statement said.
"Establish policy guidelines for the connectivity of digital currency infrastructure across borders, for better access and participation. This includes policy relating to governance, access, and compliance issues for such linkages," it added.
"Interoperable wholesale digital currencies offer efficiency gains through a growing range of cross-border use cases. We will evaluate these new use cases simultaneously, to keep pace with technological advancements, focusing on use cases that create good value for the broadest range of stakeholders," said Sopnendu Mohanty, Chief FinTech Officer, MAS.
Mohanty added working with competent, like-minded partners will accelerate central banks' collective progress to an optimal future state of digital infrastructures.