MAS Seeks Innovative Digital Currency Solutions Through New Global Challengeby Fintech News Singapore June 28, 2021
The Monetary Authority of Singapore (MAS) announced the launch of a global challenge for retail Central Bank Digital Currency (CBDC) solutions.
The Global CBDC Challenge seeks innovative retail CBDC solutions to enhance payment efficiencies and promote financial inclusion.
MAS had previously said that it chose to focus its attention on wholesale CBDCs with Project Ubin as there is a limited demand for a retail CBDC given that the existing payment infrastructure already enables people to transfer money rapidly and at low cost.
The challenge was launched in partnership with the International Monetary Fund, World Bank, Asian Development Bank, United Nations Capital Development Fund, United Nations High Commission for Refugees, United Nations Development Programme, and the Organisation for Economic Co-operation and Development.
Fintech companies, financial institutions and solution providers around the world are invited to submit innovative solutions that can address 12 problem statements centered on three key areas; (i) CBDC Instrument; (ii) CBDC Distribution; and (iii) CBDC Infrastructure.
The Global CBDC Challenge will be supported by Amazon Web Services, Mastercard, Partior, R3 and open source software foundations, Hyperledger and the Mojaloop Foundation, and managed by the API Exchange (APIX) and Tribe Accelerator.
Up to 15 finalists will be selected to receive mentorship from industry experts and be given access to the APIX Digital Currency Sandbox for rapid prototyping of digital currency solutions.
The sandbox will offer a comprehensive test and development platform that includes core-banking APIs from APIX, payment APIs from Mojaloop Foundation, digital currency APIs from Mastercard, Partior and R3, and more than 100 APIs provided via the APIX marketplace.
Finalists will pitch their solutions to a global audience on Demo Day to be held at this year’s Singapore Fintech Festival. Up to three winners will be selected, with each receiving S$50,000 in prize money.
Interested parties are encouraged to submit their applications for the Global CBDC Challenge here by 23 July 2021.
Sopnendu Mohanty, Chief Fintech Officer of MAS, said,
“Through the Global CBDC Challenge, MAS hopes to encourage innovator communities worldwide to develop and showcase solutions that can maximise the potential of CBDC to deliver efficiencies to payment services, improve financial inclusion, consistent with central banks’ core mandate of monetary stability.”