Ghana and Singapore's Authorities Successfully Test Digital Economy Semi-Fungible Token Project
Summary:
The Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS) have successfully completed a proof-of-concept for the Digital Economy Semi-Fungible Token (DESFT) project, aimed at stimulating trade among micro, small, and medium enterprises in both nations. The protocol employed was the United Nations Development Program's Universal Trusted Credentials semi-fungible token protocol developed by Ample FinTech. Transactions were executed with a Singapore dollar-tied stablecoin and BOG's e-cedi on a distributed ledger via the Purpose Bound Money protocol.
The Digital Economy Semi-Fungible Token (DESFT) Project, a collaboration between the Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS), has successfully executed its proof-of-concept, as stated in several local media outlets. The initiative aims to foster trade among micro, small, and medium enterprises (MSMEs) in both nations through live transactions.
These transactions utilized the Universal Trusted Credentials semi-fungible token protocol, a product of the United Nations Development Program. The DESFT, developed by Ample FinTech, incorporated verified licenses, certificates, and trade documentation. Transactions were conducted with a stablecoin tied to the Singapore dollar (XSGD) and the BOG's e-cedi, a type of central bank digital currency (CBDC). These were executed via the Purpose Bound Money protocol on a distributed ledger.
The MAS, in partnership with the central banks of Italy and South Korea and the International Monetary Fund, is credited with developing the Purpose Bound Money protocol. It combines programmable money with programmable payment technology—a system already tested by Amazon and other global retailers.
Speaking at the 3i Africa Summit in Accra, Kwame Oppong, the Bank of Ghana's Director of Fintech and Innovation, outlined the project. Post a year and two development phases, a reliable information exchange solution base on UTC standards and Semi-fungible Token technology was developed, meeting all their set objectives. Future development is expected to focus on supply chain finance and payments across multiple digital currencies.
Details regarding the semi-fungible token technology remain limited. However, it's known that Ample FinTech's protocol uses the ERC-3525 standard and operates within the Ethereum blockchain. According to a panel discussion planned for the Singapore Fintech Festival in November, the Digital Economy Semi-Fungible Token integrates non-fungible tokens and traditional blockchain information to facilitate tokenization of self-ownership using the DESFT.
The e-cedi is currently in a pilot phase, with the launch date for the CBDC still unannounced.
Published At
5/18/2024 12:44:41 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.