MAS Report Highlights Digital Identity As One of The Key Pillars of Digital Economy

MAS Report Highlights Digital Identity As One of The Key Pillars of Digital Economy

by April 27, 2021

The Monetary Authority of Singapore (MAS) launched a report on the foundational digital infrastructure necessary for an inclusive digital economy and seamless cross-border transactions around the world.

Through this report, MAS aims to help public sector agencies and players in the financial sector and technology community better understand the key value drivers of strong digital infrastructures.

MAS had collaborated with the central banks of Brunei Darussalam, Cambodia, Ghana, and Kenya along with Mastercard on the report.

The regulator said that the insights gained from the different circumstances and experiences in digital infrastructures across these countries have helped to enhance the relevance of the report to a wider range of countries seeking to build the digital economies of the future.

The report highlights four key pillars that underpin effective foundational digital infrastructures, the first being digital identity to ensure authentication and validation of an individual’s identity, while protecting privacy and security of information.

Authorisation and consent will ensure transparent and secure digital transactions through authorised use of data and mechanisms for obtaining users’ consent.

Meanwhile, payments interoperability will ensure systems for clearing and settlement of payments between users are interoperable, for seamless domestic and cross-border transactions.

Lastly, data exchange will enable users to make their data accessible to third parties for the benefit of the users, such as for payments, financial planning, and more.

MAS said that it looks forward to engaging other financial regulators, the financial industry, and the international technology community to advance the work on foundational digital infrastructures.

The next phase of the initiative will focus on building a consortium of countries who are keen to explore the digital infrastructure potential for cross-border use.

“Foundational digital infrastructures are public goods that governments have a vital role in providing or facilitating. Governments can do this through direct provision, or developing open standards for technical implementation, or guidance on best practices.”

said MAS in a statement.