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Singapore Starts Exploring Wholesale CBDC

Singapore – A Singapore-based central bank confirms that the country is exploring central bank digital currency (CBDC). The Monetary Authority of Singapore 

spoke about the subject and pointed out that a retail CBDC can help the country’s payment system infrastructure implement faster and cheaper fund transfers. With CBDC, Singapore’s central bank can focus more on wholesale CBDC development, facilitating security and payment settlements among financial institutions.

 According to the Chief Fintech Officer Sopnendu Mohatny, Singapore should start thinking about going into CBDC production since it can make the country more attractive, especially for cryptocurrency businesses in Southeast Asia. He defined Singapore as crypto-friendly and is an excellent place for blockchain technologies. 

Many experts believe that while CBDC poses certain risks, its technology is beneficial for many crypto enthusiasts. Allowing crypto to be an experimental construct in the country is one of the best investments in this century. 

It seems that 2020 is the beginning of a new financial era in Singapore. It will be remembered as the year where central bank digital currencies entered the country’s financial policy conversation seriously. Indeed, for the past years, reports have proved that CBDC will work efficiently in its jurisdiction. 

Many consumers no longer have to tolerate a delay of hours or even days to settle fund transfers with this project. In a digital world where business decisions happen frequently, funds’ availability is a must. Singapore’s CBDC can surely address many traditional finance current shortcomings and improve speed, cost, transparency, and security. 

Beyond that, Singapore’s CBDC can indeed modernize the financial value transfer for cross-border payments. A Bank for International Settlements or BIS survey published that almost 80% of Singapore’s central banks plan to engage and commence CBDC development. 

Despite the COVID-19 pandemic and limitations of banking system, Singapore can rapidly enable fund transfers and put money into citizens’ hands within the day through the CBDC system.

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