Singapore’s Monetary Authority will Host a Retail CBDC Challenge

The Singapore Monetary Authority (MAS) has launched a global challenge for retail Central Bank Digital Currency (CBDC) solutions (Global CBDC Challenge).

The International Monetary Fund, the World Bank, the Asian Development Bank, the United Nations Capital Development Fund, the United Nations High Commission for Refugees, the United Nations Development Programme, and the Organisation for Economic Co-operation and Development launched the initiative in collaboration with the International Monetary Fund, the World Bank, the Asian Development Bank, the United Nations Capital Development Fund, the United Nations High Commission for Refugees, and the Organization for Economic Co-operation and Development. The Global CBDC Challenge is looking for creative retail CBDC solutions to improve payment efficiency and financial inclusion.

FinTech businesses, financial institutions, and solution providers from all around the world are asked to contribute creative solutions to 12 issue statements centered on three important areas, CBDC Instrument, CBDC Distribution, and CBDC Infrastructure are the three types of CBDC. These problem statements were compiled using suggestions from partner organizations all throughout the world.

A retail CBDC constructed for next-generation financial railways has the potential to boost payment efficiencies, financial inclusion, and the economy’s overall digitalization drive. Retail CBDC solutions, on the other hand, must meet a number of public policy objectives in terms of design and technology.        

The proposed solution should be cost-effective to deploy while also meeting the consumer’s present and future payment demands. It must be usable by a wide range of people, including low-income families and those who are less tech-savvy. The retail CBDC solution should be designed to support financial system resilience and integrity, as well as monetary and financial stability.

The API Exchange [1] (APIX) and Tribe Accelerator will handle the Global CBDC Challenge, which will be supported by Amazon Web Services, Mastercard, Partior, R3, and open source software foundations, Hyperledger and the Mojaloop Foundation. Up to 15 candidates will be chosen to get industry mentorship and access to the APIX Digital Currency Sandbox for rapid prototyping digital currency solutions.

The Sandbox will provide a comprehensive test and development platform that includes APIX core banking APIs, Mojaloop Foundation payment APIs, Mastercard, Partior, and R3 digital currency APIs, and more than 100 APIs from the APIX marketplace.

On Demo Day at this year’s Singapore FinTech Festival [2], finalists will showcase their ideas to a global audience. Up to three winners will be chosen, with each receiving a prize of S$50,000. Annex A contains more information on the competition. Those interested in participating in the Global CBDC Challenge should submit their applications by July 23, 2021.

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