The Singapore Central Bank would like to cooperate with China in the creation of the Central Bank Digital Currency (CBDC).
Singapore is ready to share knowledge with China
Ravi Menon, Managing Director of the Monetary Authority of Singapore, or MAS, has expressed the country’s readiness to establish close cooperation with China in the field of digital currencies.
Speaking at the financial forum in Shanghai, Menon highlighted China’s progress in developing the digital currency of the central bank, the digital juna. Singapore, which is also actively working on its CBDC, would like to exchange knowledge and experience with the Chinese government.
Menon said that CBDC is now a very important project and pointed out that Singapore and the Central Bank of China are considering two different scenarios for the development of CBDC. According to him, the reasons for a different approach to CBDC differ due to the fact that they arise in other countries. The official stressed that the main goal of the Singapore CBDC project is to reduce the cost of payments and cross-border settlements, shorten the time of transaction completion and ensure security.
The MAS official encourages cooperation with the Libra project
During the event, Menon also mentioned the Facebook project – Libra. The official stated that Libra is a big threat to the global system of central banks, but this project is also “very flexible” because it is closely involved in cooperation with global regulators.
“We should not reject Libra’s values, but we should have more discussions with them”
Menon said. Earlier, he expressed a similar position in relation to Libra in the summer of 2019.
Singapore’s monetary authorities have been working on their interbank payment project based on blockchain technology since the end of 2016. Officially announced in 2018 the so-called “Project Ubin” is a project whose goal is to use a block chain to settle payments and investment contracts.
China has very ambitious plans
In June 2019, information appeared on the network that the Chinese Central Bank is trying to launch the digital yuan, faster than Facebook, on its Libra. While the Chinese CBDC is already being tested in some cities, experts are convinced that China will launch its digital currency and citizens will not even notice the changes.
In mid-June it was announced that China was also planning introduction of another digital currency in East Asia for greater independence from the US dollar. The planned project would support many regional currencies such as Chinese Yuan, Japanese Yen, South Korean Won and Hong Kong Dollar.