Coins.ph partners with Paxos to further PYUSD adoption

Singapore’s MAS gears up for live CBDC pilotThe Monetary Authority of Singapore (MAS) has unveiled plans to initiate a live central bank digital currency (CBDC) pilot for wholesale interbank settlement in 2024.Photo by Sergio Sala on UnsplashMoving beyond simulationThis pilot will move beyond simulation, involving the actual utilization of a live wholesale CBDC for settling payments between commercial banks. Furthermore, MAS indicated that upcoming pilots may extend to leveraging wholesale CBDCs for the settlement of cross-border securities trade.MAS Managing Director Ravi Menon expressed the significance of this move, stating:“The ‘live’ issuance of central bank digital money for use as a common settlement asset in payments is a significant milestone in MAS’ digital money journey that began in 2016. The issuance of wholesale CBDC reinforces the role that central bank money plays in facilitating safe and efficient payments.”Orchid BlueprintThis announcement is a key component of the Orchid Blueprint, a comprehensive plan detailing the infrastructure essential for facilitating the pilot and future developments. In addition to the wholesale CBDC initiative, the Orchid Blueprint outlines the expansion of trials to encompass tokenized bank liabilities and regulated stablecoins, solidifying Singapore’s commitment to fostering innovation in the digital finance space.As part of the Orchid Blueprint, MAS is set to create a settlement ledger to record digital money transfers. This ledger will incorporate features like programmability and atomic settlement of digital tokens. To enhance user experience, a “Name Service” for customer-friendly wallet addresses and name identifiers is on the agenda. Additionally, a tokenization bridge will be developed to connect existing account-based settlement systems with ledgers compatible with tokenized forms of digital money.Purpose-bound moneyThe Orchid Blueprint introduces a “programmability protocol” based on the concept of “purpose-bound money” (PBM). PBM, a concept considered by the MAS in a whitepaper that it published earlier this year, allows for the specification of certain conditions for the use of digital money, enabling automation of transactions and predefined conditions for settlement. This innovative approach empowers centralized planners to define the conditions for usage, bringing a new level of flexibility to the digital financial landscape.This development aligns with the broader trend of increasing institutional interest in digital currencies and blockchain technology. The move towards live CBDC pilots, tokenization and stablecoins underscores Singapore’s commitment to staying at the forefront of financial innovation. As the Orchid Blueprint unfolds, it sets the stage for a dynamic and technologically advanced financial ecosystem, reinforcing Singapore’s position as a leader in the global digital finance arena.In a related move within the region, crypto firm Paxos recently announced plans to launch a new USD-backed stablecoin in Singapore, receiving in-principle approval from MAS to issue the stablecoin. Meanwhile, International Monetary Fund (IMF) Managing Director Kristalina Georgieva outlined in a keynote speech at the Singapore FinTech Festival earlier this week that CBDCs not only could replace cash but also improve financial inclusion.These concurrent developments indicate the growing convergence of traditional financial systems with the expanding digital currency landscape.

The Philippines is on track to finalize Project Agila, its wholesale central bank digital currency (CBDC) trial, by the end of this year. Three primary use casesThat’s according to statements made on March 6 by Deputy Governor Mamerto Tangonan of the Bangko Sentral ng Pilipinas (BSP) —  the Philippine central bank. According to a local news report by GMA News, the Deputy Governor outlined three primary use cases for the wholesale CBDC trials in a press conference: interbank settlement, settlement of securities transactions and cross-border payments. Notably, the Philippines is participating as an observer in the cross-border CBDC project mBridge, which involves China, Hong Kong, Thailand and the United Arab Emirates (UAE). Six domestic institutions are involved in the current tests in the Philippines: BDO Unibank, China Banking Corp, Land Bank of the Philippines, Rizal Commercial Banking, Union Bank of the Philippines and Maya Philippines.Photo by OJ Serrano on UnsplashUsing pilot as ‘learning exercise’Tangonan described the pilot as a "learning exercise in order to put us in a better position to assess whether this technology is what, itself, claims to be.” Typically, central bank accounts are restricted to commercial banks and some central counterparties in financial markets. However, the BSP intends for the wholesale CBDC to be accessible to banks and certain financial institutions. Nevertheless, past tests, including one in Canada, have highlighted potential limitations, such as the inability of brokers to use the wholesale CBDC for settlement. An ongoing interest since 2020The Philippines initially expressed interest in issuing a CBDC in 2020, with the BSP Monetary Board conducting a positive initial assessment of a wholesale CBDC and planning pilot tests from 2022 onwards, known then as Project CBDCPh. The launch of the pilot project was announced in April 2022. In 2023, the Southeast Asian country participated in a pilot study with the Digital Dollar Project, Western Union and BDO Unibank to explore a retail CBDC for remittance purposes. While the study found potential cost reductions and increased transparency and competition, it also identified challenges related to transaction speed, particularly due to most remittances arriving after working hours. Moving away from blockchainLast September, the BSP announced plans to utilize the Hyperledger Fabric blockchain. However, in February, Governor Eli Remolona stated that the CBDC would not be utilizing blockchain technology. At that time, the central bank Governor had indicated the expectation of launching a wholesale CBDC either next year or by 2026. Elsewhere in the Asian region, the Hong Kong Monetary Authority (HKMA) recently announced its own wholesale CBDC trials, Project Ensemble, underscoring the growing interest and activity in CBDC development across various jurisdictions. The Chinese autonomous territory is also cooperating with its colleagues in mainland China in participating in testing of the digital yuan or e-CNY, with a particular focus on cross-border payments.India represents another key Asian nation which has devoted quite a lot of time and resources to CBDC development already. However, a report last month suggested that the world’s most populous country has concerns with regard to the question of privacy relative to CBDC use. For that reason, it has determined the need to remain cautious while continuing CBDC development.  

SBINFT and JPNFT Collaborate to Establish A Secure NFT Market in JapanSBINFT, a Japanese company specializing in NFT consulting and marketplace services, has joined forces with JPNFT, a Japanese platform dedicated to establishing a secure NFT market by combating unauthorized NFTs, according to a press release. Together, these entities are working towards the development of a marketplace that ensures users have access to secure and authorized NFTs, with the overarching aim of promoting the distribution of legitimate digital assets.Photo by Choong Deng Xiang on UnsplashRise of NFTsThe advent of blockchain technology has revolutionized the way digital assets are valued and their ownership is determined. This transformative technology has enabled the creation of non-fungible tokens (NFTs), which now serve as digital representations of various creations and are actively traded on dedicated marketplaces.Unauthorized NFTsSince 2021, numerous new players have entered the global NFT landscape. As of March 2023, OpenSea, the world’s largest NFT marketplace, boasts a monthly trading volume of $430 million. While this growth signals promising market development, it also brings forth challenges stemming from the proliferation of pirated and unauthorized NFTs. Considering Japan’s esteemed international reputation in the realms of art and content, the country possesses the potential to emerge as a significant player in the NFT market. However, to realize this potential, appropriate measures must be swiftly implemented to guarantee security and authenticity within the industry.License check & certification markIn order to tackle this challenge, SBINFT and JPNFT have joined forces to establish a safe and sound NFT market that ensures the availability of genuine NFTs for users. As part of this collaboration, content NFTs registered on the NFT disclosure information platform called “jpnft” will undergo a verification process for authenticity when traded on the “SBINFT Market.” This verification process will involve an official license check as well as the inclusion of a JPNFT certification mark.The launch of jpnft content on the SBINFT Market is planned for the summer of 2023. The jpnft platform plays a crucial role in distinguishing between licensed NFTs and unauthorized ones by publishing official information related to NFTs based on Japanese intellectual properties. Licensed NFTs will be either issued directly by rights holders or authorized by them. It’s worth noting that the jpnft platform was developed as a project supported by the subsidy for “Japan content localization and distribution (J-LOD)” in the 2021 Supplementary Budget of the Japanese Ministry of Economy, Trade and Industry.Previously known as nanakusa, the SBINFT Market is built on two public chains (Ethereum and Polygon) and is committed to becoming a global open marketplace and. With a focus on providing a secure trading environment, the SBINFT Market meticulously reviews NFTs to safeguard users from potential risks such as fraud and hacking.Both SBINFT and JPNFT share a common philosophy that emphasizes the security of NFTs and the healthy development of the industry. With this shared vision, the SBINFT Market aims to enhance its content offerings and position itself as an authorized NFT marketplace that handles NFTs on jpnft.Government initiativeLast month, the Working Group for Digital Society Promotion under Japan’s ruling Liberal Democratic Party (LDP) presented a proposal to Prime Minister Kishida Fumio regarding the Web3 industry. This proposal recommended the implementation of measures to safeguard Japanese content and data from unauthorized monetization by foreign entities. This initiative highlights the government’s endeavor to protect and promote the integrity of Japan’s digital assets.