The central banks of the Philippines and Singapore have entered into a FinTech agreement that could result in cross-border payments across a blockchain between their markets.
Announced yesterday at the FinTech Singapore Festival, the pact is a “FinTech Cooperation Agreement” between the Central Bank of the Philippines (BSP) and the Monetary Authority of Singapore (MAS), and aims to establish links to promote the technologies in the markets of others
The agreement sets a framework in which the two central banks will collaborate to share trends and new developments and to submit promising startups FINTECH FINTECH companies, creating an easier market entry for others with support regulatory.
“MAS and BSP share a common mindset in their approach to leverage financial technology to reduce inefficiency and benefit individuals and businesses,” said MAS Chief Executive Officer Ravi Menon. “This cooperation agreement between our two agencies provides a framework to promote financial innovation not only in our countries, but can also contribute to wider efforts in ASEAN.”
Singapore is, in particular, home to a series of FinTech efforts, including a vision supported by MAS to develop and create a digital Singaporean dollar in a chain of blocks. Earlier this year, MAS revealed the details of Phase 1, its “Ubin Project” initiative that ended with digital chips of its national currency issued on a private block chain of Ethereum.
It should be noted that central banks will also undertake joint projects in the industry, which could include the use of blockchain technology to speed up cross-border payments and the streamlining of “know your customer” (KYC) processes, reveals the announcement. . The establishment of blockchain payment channels between the two countries would mean significant state support for financial technology that supports cryptocurrencies such as Bitcoin.
The Philippines has also demonstrated a more friendly skill for the FinTech business. In February, the Philippine PASB issued regulations for bitcoin exchanges – in fact, legalized bitcoins – and became one of the first countries in the world to do so. The decision was announced as a “pioneering regulation” by BSP’s deputy director, Melchor Plabasan, who spoke of the benefits of using Bitcoin as a “quick, almost real-time and practical” motto.
In signing the agreement with Singapore, BSP Governor Nestor A. Espenilla said:
The BSP looks forward to the exciting times ahead as CA creates opportunities for new collaborations to thrive and maximize the benefits of innovative technologies. This would finally open the way to a more progressive, modern and inclusive financial system.