Ghana and Singapore have successfully completed a proof-of-concept for the Digital Economy Semi-Fungible Token Project.
There have been multiple stories in the local news that indicate that the Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS) have successfully finished a proof-of-concept for the Digital Economy Semi-Fungible Token (DESFT) Project.
Small and medium-sized businesses (also known as MSMEs) in both nations are the target audience for this project, which aims to promote trade between them.
Ghana, Singapore Conduct Token Trades Project
The United Nations Development Program’s Universal Trusted Credentials semi-fungible token protocol enabled Ample FinTech, a Singapore-based company identifying itself as the DESFT’s developer to achieve this.
The token contained confirmed commercial records, certificates, and permits. A stablecoin tied to the Singapore dollar (XSGD) and the central bank digital currency (CBDC) issued by the BOG were used for trade within a purpose-bound money protocol that was implemented on a distributed ledger.
The Monetary Authority of Singapore (MAS), in collaboration with the International Monetary Fund (IMF) and the central banks of Italy and South Korea, created a protocol known as purpose-bound money.
Amazon and other international businesses have tried it, incorporating both programmable money and programmable payment technologies. At the 3i Africa Summit, which took place in Accra, Kwame Oppong, the director of fintech and innovation at the Bank of Ghana, provided a description of the initiative.
“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 […] and conducted real trade experiments which fully align with our predetermined objectives.”
According to Oppong, the next step in the project’s development will be to concentrate on supply chain finance and payments across a variety of digital currencies.
There was a lack of information in the press about the technology behind semi-fungible tokens. Ample FinTech, operating on the Ethereum blockchain, adheres to the ERC-3525 standard.
The Digital Economy Semi-Fungible Token “combines NFTs and traditional blockchain information,” as stated in an announcement regarding a panel discussion that will take place at the Singapore Fintech Festival in November.
This token enables the tokenization of self-ownership through the use of the DESFT. The e-CEDI is now in its pilot program. The CBDC has not yet announced the start of its operations.