Monetary Authority of Singapore Completes Phase 1 of Its CBDC Project, More Trials to Come

The Monetary Authority of Singapore (MAS) has completed the first phase of its central bank digital currency (CBDC) project, Project Orchid, which explored potential use cases for a digital Singapore dollar (SGD) and the infrastructure needed to implement it. According to the report, “the situation of retail CBDC is currently unremarkable, and it continues to actively explore good use cases for digital currency. Project Orchid aims to build the technical capabilities and capabilities required by MAS to issue retail CBDC when needed.” In addition, the report It is argued that a digital SGD could take different forms, including a retail CBDC, the digital equivalent of notes and coins issued by the MAS, and privately issued currencies, possibly including tokenized bank deposits or security-backed stablecoins. Some use cases for CBDC will be tested through public and private sector trials in 2022 and 2023. Trials will include looking at government and commercial credentials that can be used to purchase goods at the upcoming Singapore Fintech Festival. Government spending that does not require participants to have a bank account will also be tested, and the CBDC will be used to automatically distribute grants. The next phase will look at the best ledger technology for a CBDC and how it can be integrated with existing infrastructure.