The completion of the Digital Economy Semi-Fungible Token (DESFT) Project, a collaboration between the Bank of Ghana (BOG) and Monetary Authority of Singapore (MAS), has been reported by local press. The aim of the project is to promote trade among micro, small, and medium enterprises (MSMEs) in both countries.
As part of the project, actual transactions have been conducted between the two sides. To facilitate this, the Universal Trusted Credentials semi-fungible token protocol, developed by the United Nations Development Program, was utilized. Ample FinTech, a Singapore-based company claiming to be the developer of the DESFT, stated that the token contained verified licenses, certificates, and trade records.
The exchange of goods and services within the project was carried out using a stablecoin pegged to the Singapore dollar (XSGD) and the BOG’s e-cedi central bank digital currency (CBDC). This was done through a Purpose Bound Money protocol on a distributed ledger.
The Purpose Bound Money protocol was developed by MAS in collaboration with the International Monetary Fund and the central banks of Italy and South Korea. It incorporates programmable money and programmable payment technology and has undergone testing by international retailers such as Amazon.
During the 3i Africa Summit in Accra, Kwame Oppong, the director of fintech and innovation at the Bank of Ghana, described the project. He mentioned that future developments would focus on supply chain finance and payments across multiple digital currencies.
Details about the semi-fungible token technology were not extensively covered in the press. Ample FinTech mentioned that it operates on the ERC-3525 standard on the Ethereum blockchain.
According to an announcement for a panel discussion scheduled at the Singapore Fintech Festival in November, the Digital Economy Semi-Fungible Token combines NFTs and traditional blockchain information, enabling the tokenization of self-ownership through the DESFT.
The pilot phase of the e-cedi is currently underway, but no official launch date for the CBDC has been announced.
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