The Singapore Monetary Authority received over 300 submissions from more than 50 countries.
The Singapore Monetary Authority has announced the winners of its global CBDC challenge.
Consensys, Criteo, and Giesecke+Devrient (G+D) were the winners.
Despite the fact that MAS introduced a CBDC earlier this year, solutions to improve payment efficiencies, financial inclusion, and digitalization across economies have yet to be developed.
Ravi Menon, the authority’s managing director, stated that if they are issued, “a digital Singapore dollar issued by MAS will be safe, widely accepted, and bear the authority of the state.”
However, he cautioned that a retail CBDC would be risky in times of economic stress. Even in normal times, “holding a significant portion of their deposits in the form of digital Singapore dollars with MAS would significantly reduce our banks’ ability to make loans.”
Consensys CBDCgo, in collaboration with Visa, enables users to spend CBDCs without changing their payment or acceptance network.
The Criteo, Secretarium, and Intel Atomic CBDC solutions provide anonymity and privacy for small transactions while also providing traceability for large transactions for anti-money laundering and counter-terrorism financing purposes.
Creating a public digital currency that is inclusive
Finally, G+D Filia, based in Munich, offers an inclusive payment method that enables participation in the digital economy without the need for a smartphone or a bank account.
G+D Filia explained that the company presented its CBDC solution Filia, which focuses on secure, consecutive offline payments, under the slogan “Building a truly inclusive public digital currency.”
“Our solution not only assists central banks in building the necessary infrastructures for a digital currency, but it also enables everyone to participate in the digital economy,” the company stated.
With ‘Project Orchid,’ MAS, which recently claimed stablecoins can have a legal place in the country’s financial sector, will collaborate with financial institutions to study how a retail CBDC can be implemented and lay the groundwork for future retail CBDC issuance decisions.
According to Sopnendu Mohanty, MAS’s chief fintech officer, there are numerous opportunities within retail CBDC solutions to unlock new use cases with programmable money and create pathways to broader financial access.