The Monetary Authority of Singapore (MAS) launched Ubin+, an expanded collaboration with international partners on cross-border foreign exchange (FX) settlement using wholesale central bank digital currency (CBDC). Ubin+ will focus on the following:
- Study business models and governance structures for cross-border foreign exchange (FX) settlement, where atomic settlement, based on digital currencies, can improve efficiencies and reduce settlement risks compared to existing payment and settlement rails.
- 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.
- Establish policy guidelines for the connectivity of digital currency infrastructure across borders, for better access and participation. This includes policies relating to governance, access, and compliance issues for such linkages.
Sopnendu Mohanty, Chief FinTech Officer, MAS, said, “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. Working with competent, like-minded partners will accelerate central banks’ collective progress to an optimal future state of digital infrastructures.”