Bank of Ghana, Singapore test digital currency for cross-border trade
TLDR
- Bank of Ghana and Monetary Authority of Singapore completed their first Proof-of-Concept for Digital Economy Semi-fungible Token (DESFT) project.
- DESFT showcases the use of digital credentials in international trade and cross-border payments, streamlining transactions, reducing costs, and mitigating fraud risks.
- The project has progressed through two phases, focusing on system development, design, and executing a cross-border trade transaction between Ghana and Singapore using the DESFT solution.
The Bank of Ghana and the Monetary Authority of Singapore recently concluded their first Proof-of-Concept for the Digital Economy Semi-fungible Token (DESFT) project.
The project was in two phases, focusing on showcasing the application of digital credentials in international trade and cross-border payments. Phase 1 involved the development and design of the DESFT system, while Phase 2 executed a cross-border trade transaction between Ghana and Singapore using the DESFT solution.
This achievement marks a significant milestone as DESFT introduces a novel approach to international trade. By leveraging digital credentials, DESFT has the potential to streamline and simplify trade processes, leading to quicker transactions, reduced costs, and mitigated fraud risks.
Key Takeaways
The DESFT project was initiated in June 2023 to introduce faster and more efficient options for international trade. It encompasses several solutions, including Universal Trusted Credentials (UTCs), Central Bank Digital Currency (CBDC), stablecoin integration, a trade marketplace, and an escrow arrangement. These components facilitate payments upon the successful verification of digital credentials, enhancing transaction reliability and security. Moving forward, the project's next phase will focus on further automating digital credential processes, implementing programmable payments across various digital currencies, and providing support for supply chain finance.
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