Singapore Financial regulator, popularly known as the Monetary Authority of Singapore(MAS) has launched an expanded initiative, Ubin+ to improve cross-border connectivity in wholesale CBDCs. The agency announced the development in its Thursday blog post. According to the announcement, MAS aims to aid its collaboration with international partners through the wholesale usage of CBDCs.
According to MAS, the Ubin+ project emerged majorly to study business models and governance structures for cross-border foreign exchange(FX) settlement. It intends to focus on situations where atomic settlement based on digital currencies can modify efficiencies and reduce settlement risks compared to existing payment and settlement rails.
Also, MAS, through Ubin+ aims to develop technical standards and infrastructure to support cross-border connectivity. Interoperability and atomic settlement of currency transactions across outlets utilizing distributed ledger technology(DLT), and non- DLT based financial market infrastructures will also be established.
MAZ aiming to develop policy guidelines for the connectivity of cryptocurrencies across borders
Through the project, MAS plans to establish policy guidelines for the connectivity of digital currencies infrastructure across borders. This, as reported, tends to bring about better access and participation. These policies include policies about governance, access, and compliance issues for such linkages.
Notably, Ubin+ will also manage other projects with international partners. Some of the projects include Foreign Exchange and Liquidity Management, known as Project Mariana. As revealed, the project runs as a collective drive that inquires about the exchange and settlement of Swiss Franc, Euro as Singapore dollar wholesale CBDCs with an automated market maker(AMM) arrangement. Some of the project Mariana partners includes MAS, Banque De France, Swiss National Bank, and the Bank for International Settlements Innovation Hub’s Eurosystem, Switzerland and Singapore Centres.
Projects to be undertaken through Ubin+
Remarkably, Ubin+ initiative will foster interoperability between DLT and non-DLT payment systems. Notably, MAS will also take part in SWIFT’s CBDC Sandbox, in conjunction with 17 central banks and global commercial banks. The project intends to study cross-border interoperability across digital currencies based on DLT and non-DLT payment systems.
Furthermore, MAS said the project will also facilitate Connectivity across heterogenous digital currency networks. As revealed, the Singapore regulator intends to research feasible mechanisms to retain connectivity across CBDC and other heterogeneous digital currency networks. Similarly, the Ubin+ project intends to boost Singapore’s ability to use digital currency-based infrastructure for cross-border transactions.
MAS Chief Fintech Officer, Mr. Sopnendu Mohanty also reacted to the development. According to him, Interoperable wholesale digital currencies deliver efficiency gains through a rising range of cross-border use cases. He further that the agency looks to asssss the use cases to meet up with technological advancements. Also, Mohanty noted that the agency intends to hasten its growth by working with competent and like-minded partners.
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