Web3, an emerging concept, is part of Singapore’s central bank’s initiative to promote fintech. However, the Monetary Authority of Singapore (MAS) also aims to boost decentralized applications via Web3. Blockchain enables the construction of decentralized apps and protocols in this advanced digital landscape. Moreover, MAS fosters fintech growth, including Web3, signaling the next phase of the internet’s evolution.
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. 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.
In addition, 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). However, Dedicated to promoting solutions addressing sustainability challenges and opportunities in the Environmental, Social, and Governance fintech track.
Web3: A Key Focus Area For Singapore
However, 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. However, 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. Moreover, as an example, one of these open calls will specifically target Web3 applications related to digital identity, asset tokenization, and decentralized finance (DeFi).
MAS emphasized the importance of talent development within the scheme. Furthermore, applicants from various tracks will need to allocate resources for training and upskilling their staff and partners, strengthening the fintech talent pool in Singapore.
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 $340M to fuel innovation and tech adoption in the financial sector. He added:
“MAS will conduct open calls for innovative technologies in industry use cases. Grant funding will be provided to support actual trial and commercialization.”
Several countries, including China, India, and Switzerland, are joining Singapore in exploring Web3 and its impact on the financial sector. These nations are actively interested in developing their own Web3 ecosystems and regulations.
Singapore strongly backs fintech, including Web3. Its friendly regulations, vibrant startups, and financial prowess make it a proactive and supportive hub. The country aims to solidify its Web3 and fintech leadership through a new initiative, reinforcing its frontrunner status.
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