The Monetary Authority Of Singapore (MAS) is stepping up its work on cross-border foreign exchange settlement using wholesale central bank digital currency.
Building on Project Ubin, Ubin+ will see Singapore work with a host of international partners on several projects.
Project Mariana will explore the exchange and settlement of Swiss franc, Euro and Singapore dollar wholesale CBDCs with an automated market maker arrangement. The project is a partnership involving MAS, Banque de France, Swiss National Bank, and the Bank for International Settlements Innovation Hub’s Eurosystem, Switzerland and Singapore Centres.
Meanwhile, MAS is participating in Swift’s CBDC Sandbox, together with more than 17 central banks and global commercial banks, to explore cross-border interoperability across digital currencies based on DLT and non-DLT payment systems.
Finally, MAS is studying possible mechanisms to maintain connectivity across CBDC and other heterogenous digital currency networks. MAS will also study the use of smart contracts to boost efficiency and reduce counterparty risks in the settlement of cross-border transactions.
Sopnendu Mohanty, chief fintech officer, MAS, says: "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."