Singapore’s central bank is looking to join forces with the People’s Bank of China (PBoC) to explore Central Bank Digital Currencies, according to Ravi Menon, Managing Director of the Singapore Monetary Authority (MAS).
During a finance conference in Shanghai, Menon stated the new plan. He outlined the progress China has made in creating its own CBDC, and said Singapore was looking to share information and experience in this field with China. Singapore is conscientiously looking to build a central bank digital currency.
Menon stated the new plan during a financial conference in Shanghai. Additionally, he outlined China’s digital Yuan development progress. Singapore is conscientiously looking to build a cryptocurrency central bank and is looking forward to exchanging skills and expertise with China, as reported by Sina Finance on 18 June.
Singapore exploring Central Bank Digital Currency
Menon allegedly stated that the state-issued cryptocurrencies were a hot topic, outlining that Singapore and China are deliberating on various CBDC development scenarios. He also noted that the reasons for developing a Digital Currency Central Bank differ on a country-by-country basis.
However, he stated that Singapore ‘s reason for developing a CBDC is to cut the cost of cross-border payments and settlements, protect transactions through blockchain, and reduce payment processing time.
Facebook Libra project challenge to central banks
Menon also mentioned that the embattled Facebook Libra stablecoinn is facing and said that Libra is a major challenge to the global central bank system. He also asserted that the Libra stablecoin has “great flexibility” and that the team behind its development is committed to working closely with international regulators.
The Singapore Monetary Authority has been developing its interbank blockchain-based payment system since 2016. The Ubin Project, which was officially launched in 2018, is a partnership to explore the application of blockchain technology to clear and settle payments and securities.
China’s plan to counter Facebook Libra project and USD
Back in June 2019, PBoC was in a rush to launch its CBDC ahead of Facebook Libra’s stablecoin. Although the digital yuan is undergoing pilot tests in various Chinese cities, experts suggest that China might deploy it with the public, not noticing the change. Furthermore, early in June, reports broke out that China is planning to develop an East Asia digital currency to reduce the over-reliance in the United States dollar.