The Monetary Authority of Singapore (MAS) has launched Ubin+, an expanded collaboration on a cross-border foreign exchange using wholesale CBDC.
According to MAS, Ubin+ will focus on studying business models and governance structures for cross-border FX settlement, where atomic settlement, based on digital currencies, can boost efficiencies, and reduce settlement risks compared to existing payment and settlement rails.
The project will also focus to develop technical standards and infrastructure to support cross-border connectivity, interoperability, and atomic settlement of currency transactions across platforms using distributed ledger technology (DLT), and non-DLT based financial market infrastructures.
In addition, the project will establish policy guidelines for the connectivity of digital currency infrastructure across borders, for better access and participation. This includes policy relating to governance, access and compliance issues for such linkages.
As part of Ubin+, projects will be undertaken with international partners. Project Mariana – a foreign exchange and liquidity management project – is an initiative that explores the exchange and settlement of Swiss franc, Euro and Singapore dollar wholesale CBDCs with an automated market maker.
MAS chief FinTech officer Sopnendu Mohanty said, “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. Working with competent, like-minded partners will accelerate central banks’ collective progress to an optimal future state of digital infrastructures.”
The European Central Bank recently published the results of its thematic review, which has shown that banks are ‘still far’ from managing climate risks.
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