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    MAS nor Fed see urgency of CBDC

    Posted by Ivo Cerckel on November 9th, 2021

    The central bank of Singapore, the Monetary Authority of Singapore (MAS), nor the central bank of the USA, the Federal Reserve (Fed), see the urgency of central bank digital currency (CBDC).

    On Monday 08 November 2021,Fed Governor Michelle Bowman said that given the safety and efficiency of the U.S. payment system she doesn’t see much of a reason for the Fed to issue a U.S. central bank digital currency.
    “I’m not really sure that I understand or see the business case for creating it,” Bowman said, noting that the Fed is currently putting together a paper looking at the pros and cons of the issue as a “conversation starter.” That paper should come out soon, she said. (1)

    Today Tuesday 09 November 20221, MAS) chief Ravi Menon, speaking at the Singapore Fintech Festival 2021 in a session called “The Future of Money, confirmed that
    there are presently neither strong reasons for or against a CBDC retail central bank digital currency (CBDC) in Singapore, even as he noted that interest in these digital versions of cash has “risen sharply” in the last 2 years. (2)

    Menon went on to add that the MAS recognises that there could be potential benefits offered by innovative retail CBDC solutions in the future. And that the MAS is therefore And The Monetary Authority of Singapore (MAS) is embarking on “Project Orchid” to build the technology, infrastructure and technical competencies that are necessary to issue a digital Singapore dollar should it decide to do so in the future. (3)

    Here’s the speech of the MAS managing director

    Ivo Cerckel
    ivocerckel@yahoo.com

    NOTES

    (1)
    Fed’s Bowman doesn’t see case for U.S. central bank digital currency
    By Reuters Staff
    November 9, 2021
    https://www.reuters.com/article/usa-fed-bowman-cbdc/feds-bowman-doesnt-see-case-for-u-s-central-bank-digital-currency-idUSS0N2O401R

    (2)
    Case for digital Singdollar ‘not urgent’, but MAS recognises benefits of retail CBDCs: Ravi Menon
    TUE, NOV 09, 2021 – 10:00 AM
    KELLY NG
    https://www.businesstimes.com.sg/banking-finance/case-for-digital-singdollar-not-urgent-but-mas-recognises-benefits-of-retail-cbdcs

    (3)
    MAS embarks on ‘Project Orchid’ to build retail CBDC capabilities
    Khairani Afifi Noordin Published on Tue, Nov 09, 2021 / 9:22 AM GMT+8 /
    https://www.theedgesingapore.com/news/disruption-and-digitalisation/mas-embarks-project-orchid-build-retail-cbdc-capabilities