The Monetary Authority of Singapore (MAS), which serves as Singapore’s central bank, has recently introduced a new initiative to foster the growth and adoption of various financial technology solutions. Among these innovations is Web3, an emerging concept that encompasses the next phase of the internet. In this advanced digital landscape, decentralized applications and protocols are constructed using blockchain technology.
Additionally, the Financial Sector Technology and Innovation Scheme (FSTI 3.0) is a new initiative aiming to accelerate and strengthen innovation in the financial sector. Furthermore, through a funding allocation of up to 150 million Singapore dollars over three years, this scheme will support projects that leverage cutting-edge technologies. The objective is to facilitate trial runs and commercialization by partnering with industry players and providing grant funding.
The scheme comprises multiple tracks. One such track is the Enhanced Centre of Excellence, which supports research and development in artificial intelligence, data analytics, and regulation technology (RegTech). Another track is the Environmental, Social, and Governance fintech track, dedicated to promoting solutions that address sustainability challenges and opportunities.
Web3: A Key Focus Area For Singapore
The Innovation Acceleration track is a prominent feature of the scheme as it focuses on Web3, acknowledging its immense potential to revolutionize the financial industry. Additionally, this track aims to enhance transparency, security, and efficiency in transactions and services.
According to the announcement, MAS will hold open calls for innovative technologies in various industry use cases. For example, one of these open calls will specifically target Web3 applications. Moreover, these applications are related to digital identity, asset tokenization, and decentralized finance (DeFi).
MAS emphasized the importance of talent development within the scheme. Applicants from various tracks will need to allocate resources for training and upskilling their staff and partners, strengthening the fintech talent pool in Singapore.
Furthermore, Ravi Menon, the managing director of MAS, stated that the scheme is part of the financial sector development fund. Since 2015, this fund has awarded $340 million to drive innovation and encourage technology adoption in the financial sector. Consequently, it has significantly influenced industry advancement. He added:
“MAS will conduct open calls for innovative technologies in industry use cases. Support for actual trial and commercialization will be provided through grant funding.“
Several countries, including China, India, and Switzerland, are joining Singapore in exploring Web3 and its impact on the financial sector. Moreover, these nations are actively interested in developing their own Web3 ecosystems and regulations. Singapore has actively supported fintech innovation, including Web3.
Through its new initiative, Singapore aims to harden its position as a frontrunner in Web3 and other fintech innovations.
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