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Singapore and China will examine a digital currency issued by the central bank

June 19, 2020

The Central Bank and the Singapore Financial Regulator are seeking to work with China on digital money issued by the Central Bank.

Ravi Menon, Managing Director of the Singapore Monetary Authority (MAS), It has expressed the country’s willingness to work closely with China on digital currencies.

Lecture at a financial forum in Shanghai, Menon highlighted China’s progress in developing its central bank digital currency (CBDC), known as the digital yuan.. Singapore, which is also actively involved in blockchain-based CBDCs, wants to exchange knowledge and experience with China, reports Sina Finance on June 18.

Singapore and China will examine a digital currency issued by the central bankSingapore and China will examine a digital currency issued by the central bank

Menon would have said that CBDC is currently a very hot topic and found that Singapore and the Chinese central bank are discussing different scenarios for developing a CBDC. The official noted that the reasons for developing a CBDC vary from country to country, and stressed that the main aim of the CBDC project in Singapore is to reduce cross-border payment and processing costs, reduce processing time and that Ensure transaction security.

MAS officials are encouraging more collaboration with the Facebook Libra

At the event, Menon also mentioned Facebook’s problematic stablecoin project Libra. The official would have noticed that the Libra is a major challenge to the global central banking system, but the project also has “great flexibility” as the Libra team is committed to working closely with global regulators.. “We shouldn’t reject the value of the scales, but have more conversations with them,” added Menon. The official had previously expressed a similar attitude to the scales in summer 2019.

The Singapore Monetary Authority has been working on its interbank payment project with blockchain since the end of 2016. The so-called “Project Ubin”, which was officially announced in 2018, is a joint effort to investigate the use of blockchain for clearing and settlement. of payments and values.

China has more digital currency plans to compete with the USD and the pound

According to reports, was in June 2019 China’s central bank hurried to launch its digital yuan on Facebook’s Libra scale. 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.

In mid-June, it was reported that China is also planning an East Asian digital currency to become more independent 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.