Ghana, Singapore will conduct a semi-fungible token pilot project
The Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS) have completed proof-of-concept for the Digital Economy Semi-Fungible Token (DESFT) project, according to various local press reports. The project aims to promote trade between micro, small and medium enterprises in the two countries.
In the project, direct transactions were conducted between the parties. To do this, they used the Universal Trusted Credentials Semi-fungible Token protocol developed by the United Nations Development Programme, says Singapore-based Amp Fintech, which claims to be the developer of DESFT. The token contains verified licenses, certificates and trading records.
Stable Coin Singapore Dollar (XSGD) and BOG e-CD Central Bank Digital Currency (CBCC) are used to exchange on a distributed ledger with the Purpose Bond Money Protocol.
MAS, in cooperation with the International Monetary Fund and the central banks of Italy and South Korea, developed the Target Bond Funding Protocol. It includes both programmable cash and programmable payment technology and has been tested by Amazon and other global retailers.
Related: Bank of Ghana to promote financial inclusion through CBCC project
The Bank of Ghana's Director of FinTech and Innovation, Kwame Oppong disclosed the project at the 3i Africa Summit in Accra. he said:
“After one year and two stages of development, we have developed a reliable data exchange solution based on UTC standards and semi-fungible token technology. […] Conducted real business trials that fully fit our predetermined objectives.
Oppong continued that future development of the project will focus on supply chain finance and payments in multiple digital currencies.
Details about the semi-fungible token technology were scarce in the press. Ample FinTech said it operates on the Ethereum blockchain at the ERC-3525 standard.
According to an announcement of a panel discussion scheduled for the Singapore FinTech Festival in November, the digital economy's semi-fungible token will “combine NFTs and traditional blockchain data to enable token ownership through DESFT.”
E-CD is in the experimental stage. A start date for CBCC has not been announced.
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