Singapore’s Monetary Authority (MAS) has launched a pilot program for the live issuance of a central bank digital currency (CBDC) based on the Singapore dollar. This move represents a significant departure from previous simulations, as MAS collaborates with local banks to practically test the use of CBDCs in real-world domestic payment scenarios. The pilot program aims to bring tangible advancements to the financial landscape by enabling instantaneous settlements across commercial banks.As part of the pilot program, banks will issue tokenized liabilities that represent claims on their balance sheets. Retail customers can then utilize these tokenized liabilities for transactions with merchants, with settlements occurring seamlessly through an automatic transfer of wholesale CBDCs. This streamlined process eliminates the delays inherent in traditional systems where clearing and settlement occur on separate platforms.MAS Managing Director Ravi Menon emphasized the significance of CBDCs and stablecoins, predicting that they will become integral components of the future financial ecosystem. He highlighted CBDCs’ potential to enhance efficiency in payment settlements, contributing to a more seamless and instantaneous financial landscape.The pilot program is part of MAS’s broader Project Guardian, which aims to integrate decentralized finance (DeFi) elements into financial infrastructure. The project includes five additional industry pilots exploring various use cases related to asset tokenization. MAS is collaborating with the Federal Reserve Bank of New York’s New York Innovation Center to explore the use of CBDCs for wholesale cross-border payments.Overall, the live CBDC pilot program in Singapore represents a significant step forward in the adoption and practical implementation of digital currencies in the financial sector.

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Information	Details
Geography	Asia
Countries	🇸🇬
Sentiment	positive
Relevance Score	1
People	Ravi Menon
Companies	Federal Reserve Bank of New York, Monetary Authority of Singapore (MAS)
Currencies	Stablecoin, CBDC, Singapore Dollar
Securities	None