The central banks of Singapore, Malaysia and Thailand will examine the use of stablecoins and other digital currencies for cross-border payments in a project joined by Ripple, Visa and Mastercard.
According to information reported by Wu Blockchain on October 23, citing the Monetary Authority of Singapore (MAS), the central banks of the three countries will work with industry participants on settling cross-border payments. Regulated stablecoins, tokenized deposits and other forms of digital currency are on the agenda.
Organizations newly joining the project include Ripple, Visa, Mastercard, Airwallex and the World Bank Group. This brings together central banks, payment companies and players from the digital asset industry under the same initiative.
How Will Different Payment Networks Be Connected?
One of the project’s main goals is to enable different payment networks to work together. The ability of systems used in a cross-border transfer to communicate with one another is important for settling a digital currency payment on the receiving end.
Among the tools under review, tokenized deposits represent bank deposits as digital tokens. The central banks’ work with the industry will focus on how these tools and regulated stablecoins can be used for cross-border settlement.
Compliance Checks Will Also Be Built Into Digital Transactions
Another focus will be programmable compliance controls. This approach aims to incorporate checks that verify transactions comply with relevant rules into digital payment processes.
The three central banks’ joint work plan addresses the infrastructure needed for digital currencies to be used not only on their own networks, but also across the payment systems of different countries.
Not investment advice.