Monetary Authority of Singapore Announces to Rollout CBDCs by 2024

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Published: November 16, 2023 at 4:12 am Updated: November 16, 2023 at 4:12 am

Edited and fact-checked:
November 16, 2023 at 4:12 am

In Brief

Monetary Authority of Singapore (MAS) plans to collaborate with local banks on pilot program for issuance and utilization of CBDCs in 2024.

The Monetary Authority of Singapore (MAS) plans to collaborate with local banks to initiate a pilot program for the live issuance and utilization of wholesale central bank digital currencies by 2024. As per MAS Managing Director Ravi Menon, the pilot will involve using wholesale CBDCs for domestic payments.

Banks will issue tokenized bank liabilities through the form of claims in balance sheets. Retail customers can subsequently employ these tokenized bank liabilities in transactions with merchants, who will then credit these with the participating banks.

The CBDC will be automatically transferred and credited to the merchant during the transaction.

MAS’s Managing Director Menon supported the adoption of wholesale CBDCs and tokenized bank liabilities, emphasizing their alignment with existing financial and monetary systems in the country.

Nations Around the Globe Explore CBDC’s Potential

An increasing number of nations are exploring digital versions of their currencies, with several at advanced development, pilot, or launch stages. Approximately 120 countries are currently exploring CBDCs and some, such as India and China, are conducting pilot programs to evaluate its feasibility.

Lately, the leader of the International Monetary Fund has encouraged nations to take a more proactive stance in the development of CBDCs. By embracing a gradual adoption approach of CBDCs, central banks can secure their position in the fiercely competitive landscape of digital currency.

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About The Author

Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and engagement with scientific writing.

Alisa Davidson