MAS Casts Cross Border Payments Project Ubin+ for Wholesale CBDC
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The usage of CBDCs for managing foreign currency and liquidity and their linkage to other digital asset platforms will be tested by Ubin+. The bank will investigate the potential interactions between distributed ledger technology (DLT)-based systems and non-ledger payment networks as part of the study.
Ubin+ Project Focus Aspects
The Ubin+ project will focus on the establishment of technical infrastructure and regulations, the examination of company models and organizational structures, and the creation of policy directives. The following projects will be carried out as part of Ubin+ with foreign partners.
The development of wholesale CBDCs, based on technology similar to DLT that underpins cryptocurrency and be used only amongst banking firms to execute quick settlements, has been progressing more quickly. This has been aided by funding from the Bank for International Settlements (BIS), an organization of central banks worldwide.
Project Mariana - Program to Manage FX and Liquidity
Project Mariana, a program for managing foreign exchange and liquidity, comprises the BIS Innovation Hubs, the federal reserve of France and Switzerland, and MAS. The study will investigate currency exchanges, including the Swiss franc, euro, and Singapore dollar.
The news comes shortly after the MAS, Singapore's central bank, launched two new initiatives for items related to wealth management and trade financing.
Other Banks to Participate in CBDC Trial
According to MAS, as a component of Ubin+, 17 other federal reserve and commercial banks are also participating in the CBDC Sandbox trial of cross-border compatibility through SWIFT.
Chief FinTech Officer of MAS, Mr. Sopnendu Mohanty, stated that the open-standard wholesale virtual currencies provide efficiency advantages through an expanding spectrum of cross-border use cases. To stay up with technology improvements, they will analyze these new applications concurrently while concentrating on those that produce excellent value for the widest possible variety of stakeholders.