Ghana and Singapore Agencies Team Up for on Semi-Fungible Token Project to Boost Trade

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The Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS) have successfully completed a proof-of-concept for the Digital Economy Semi-Fungible Token (DESFT) Project, aimed at enhancing trade between micro, small, and medium enterprises (MSMEs) in both countries. 

This groundbreaking initiative leverages advanced blockchain technologies to facilitate secure and efficient cross-border transactions.

Bank of Ghana and MAS Collaborate

The project involved live transactions using the Universal Trusted Credentials (UTC) semi-fungible token protocol, developed by the United Nations Development Program.

Singapore-based Ample FinTech, identified as the developer of DESFT, facilitated these transactions. The semi-fungible tokens carried verified licenses, certificates, and trade records, ensuring the authenticity and reliability of the information exchanged.

Usage of XSGD

Key to the project was the use of a stablecoin pegged to the Singapore dollar (XSGD) and the BOG’s e-cedi central bank digital currency (CBDC)

These digital currencies were exchanged within a Purpose Bound Money protocol on a distributed ledger, developed by MAS in collaboration with the International Monetary Fund and the central banks of Italy and South Korea. 

This protocol incorporates programmable money and programmable payment technology, having been tested by major international retailers like Amazon.

Bank of Ghana Director Weighs In

Kwame Oppong, the Bank of Ghana Director of Fintech and Innovation, highlighted the project’s progress at the 3i Africa Summit in Accra. 

“After nearly a year and two phases of development, we have crafted a reliable information exchange solution founded on UTC standards and Semi-fungible Token technology,” Oppong stated.

He emphasized that the project involved real trade experiments that fully aligned with their predetermined objectives, marking a significant milestone in digital finance innovation.

Future of DESFT Project

The future development of the DESFT project will focus on enhancing supply chain finance and facilitating payments across multiple digital currencies. This ambition underscores the project’s potential to revolutionize trade finance and payments, providing a scalable and adaptable solution for the digital economy.

While detailed information about the semi-fungible token technology was limited, Ample FinTech revealed that it operates on the ERC-3525 standard atop the Ethereum blockchain. This innovative approach combines the benefits of non-fungible tokens (NFTs) and traditional blockchain information, enabling the tokenization of self-ownership through DESFT.

The e-cedi, the central bank digital currency of Ghana, is currently in its pilot phase, with no official launch date announced. This initiative forms part of a broader effort by Ghana and Singapore to explore and implement cutting-edge financial technologies, enhancing trade and economic cooperation between the two nations.

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