Ghana, Singapore move forward with semi-fungible token pilot project transactions

According to various local media reports, the Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS) have completed the proof of concept for the Digital Economy Semi-Fungible Token (DESFT) project. The project is aimed at encouraging trade between small and medium-sized enterprises (MSMEs) of the two countries.

Real-time transactions took place between both sides within the project. To achieve this, it leveraged the Universal Trusted Credentials semi-fungible token protocol developed by the United Nations Development Program, according to Singapore-based Ample FinTech, known as the developer of DESFT. Tokens contain verified licenses, certificates, and transaction records.

A stablecoin pegged to the Singapore dollar (XSGD) and BOG’s e-cedi central bank digital currency (CBDC) were used for exchange within the Purpose Bound Money protocol on the distributed ledger.

MAS worked with the International Monetary Fund (IMF) and the central banks of Italy and South Korea to develop the Purpose Bound Money protocol. It integrates both programmable currency and programmable payment technologies and has been tested by Amazon and other international retailers.

Related: Bank of Ghana fostering financial inclusion through CBDC project

Bank of Ghana Fintech and Innovation Director Kwame Oppong explained the project at the 3rd Africa Summit in Accra. He said:

“After almost a year of Phase 2 development, we have developed a reliable information exchange solution based on the UTC standard and semi-fungible token technology (…) and conducted real-world trading experiments fully consistent with our predetermined goals.”

Oppong went on to say that the project’s future development will focus on supply chain finance and payments in multiple digital currencies.

There has been a lack of details about the semi-fungible token technology in the media. Ample FinTech said it operates based on the ERC-3525 standard on top of the Ethereum blockchain.

The digital economy semi-fungible token “combines NFTs and traditional blockchain information” to enable tokenization of self-ownership through DESFT, according to an announcement from a panel discussion scheduled for the Singapore Fintech Festival in November.

e-cedi is in the pilot stage. A launch date for CBDC has not been announced.

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