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Singapore’s central bank offers cash prizes for digital currency ideas

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The Monetary Authority of Singapore (MAS), with the participation of the IMF, OECD, World Bank and Asian Development Bank, launched a call for proposals to address 12 challenges in the design of retail national digital currencies (CBDCs). This was officially announced on Monday by the country’s main bank.

Thus, all interested fintech developers can submit their proposals for the creation of the Central Bank’s cryptocurrency, or CBDC. The initiative supported by Amazon Web Services, Mastercard, Hyperledger, R3, Partior and others.

Any fintech firms and financial institutions can participate. The organizers will create a sandbox for CBDC testing and development. Over a hundred APIs will form it.

Contestants will also be able to leverage the Hyperledger developer community. In addition, Amazon Web Services will provide 15 finalists with access to the AWS platform and its advertising credits. In addition, they will be accompanied by government experts.

The results of the competition officials will announce in November at the fintech festival in Singapore. Three winners will receive $ 37,000 USD.

Fin-tech developers can submit their ideas for evaluation by the end of July.

Unlocking the potential of CBDC

The initiative aims to develop tools, infrastructure and a mechanism for the distribution of national digital currencies.

For example, one of the questions is: “Is it possible to build additional functionality into a retail CBDC without requiring users to use smartphones”.

The representative of the Central Bank, Sopnendu Mohanty, noted that this competition created to collect solutions on a wide range of political and technological problems related to the development of CBDC.

“Our organization and country plans to help developers – innovators around the world with this competition. And give them the opportunity to demonstrate their ideas that can unleash the potential of CBDC as a means of increasing the efficiency of payment services and improving financial inclusion”, the official said.

Digital currencies from central banks

As a reminder, PwC named the Bahamas, Cambodia, China and Ukraine as leaders in the development of retail CBDCs.

It should be noted, however, that Singapore has also become a major global player in the development of digital currencies. Actively researching both the CBDC and the crypto industry.

According to experts, 80% of central banks are actively exploring use cases for CBDC. And many of them face policy, privacy and technology-related challenges.

Central banks have begun to explore tools to deal with potential risks. Such as imposing reserve requirements on virtual currency schemes. Now we are seeing the continuation of discussions, the emergence of new documents, the preparation of pilot projects for the emission of digital money by central banks in a number of countries is underway. In 2021, the results of some pilot projects and further development of regulation can be expected.

Several banks are already in various stages of research and development, including the five major world currencies – the dollar, the euro, the Japanese yen, the British pound sterling and the Chinese yuan.

China is undoubtedly the leader in this group.

According to experts, 10% of states will have their own digital currencies and exchanges for their exchange by 2025.

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