Featured Product

    MAS Launches Global Challenge for Retail CBDC Solutions

    June 28, 2021

    MAS announced the launch of a global challenge for retail Central Bank Digital Currency (CBDC) solutions. 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 Program, and Organization for Economic Co-operation and Development, the Global CBDC Challenge seeks innovative retail CBDC solutions to enhance payment efficiencies and promote financial inclusion. Interested parties are encouraged to submit their applications for the Global CBDC Challenge by July 23, 2021. Finalists will pitch their solutions to a global audience on a Demo Day to be held at the Singapore Fintech Festival in 2021.

    As part of the challenge, fintech companies, financial institutions, and solution providers worldwide are invited to submit innovative solutions that can address 12 problem statements centered on three key areas including:

    • Improving and expanding the accessibility and utility of digital payments
    • Mitigating risks associated with payment transfers and market infrastructure
    • Providing a viable CBDC infrastructure that is low-cost, efficient, and robust and provides for trusted settlement of payment transactions among participants

    The problem statements include new functionality versus inclusivity, security versus accessibility, availability versus risk of disputes, recoverability versus anonymity, widespread frictionless use versus control, personal data protection versus system integrity, expansion of access to financial services versus guarding against data monopolies, coexistence versus integration complexities, decentralization versus accountability, extensibility versus operational resilience, privacy versus performance, and interoperability versus standardization. These problem statements have been curated from suggestions received from partner organizations worldwide. 

    A retail CBDC built for next-generation financial rails has the potential to increase payments efficiencies, improve financial inclusion, and support the broader digitalization drive in the economy. However, the design and technology underpinning retail CBDC solutions need to meet a number of public policy objectives:

    • The proposed solution should be cost effective to implement, while addressing both current and anticipated future payment needs of the consumer.
    • It must be accessible to a full spectrum of users, including lower-income households and those who are less tech-savvy.
    • The design of the retail CBDC solution should contribute to financial system resilience and integrity and be consistent with monetary and financial stability

    The Global CBDC Challenge will be supported by Amazon Web Services, Mastercard, Partior, R3, and open source software foundations Hyperledger and the Mojaloop Foundation; the challenge will be 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, which includes core-banking application programming interfaces (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.

     

    Keywords: Asia Pacific, Singapore, Banking, CBDC, Fintech, Global CBDC Challenge, IMF, World Bank, Asian Development Bank, United Nations Capital Development Fund, United Nation High Commission for Refugees, UNDP, OECD, Singapore Fintech Festival, APIX, API, MAS

    Related Articles
    News

    APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness

    APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).

    December 02, 2021 WebPage Regulatory News
    News

    EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance

    The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).

    December 01, 2021 WebPage Regulatory News
    News

    FSB Sets Out Good Practices for Crisis Management Groups

    The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.

    November 30, 2021 WebPage Regulatory News
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Updates Timeline for Implementation of Certain Basel Rules

    Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.

    November 29, 2021 WebPage Regulatory News
    News

    EC Defers Adoption of Regulatory Standards for Disclosures Under SFDR

    EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.

    November 29, 2021 WebPage Regulatory News
    News

    FCA Releases MIFIDPRU Application Forms and Third Set of Rules on IFPR

    The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7751