(Nov 13): Bitcoin has taken the world by storm. Yet, the game changer for global financial services is not the meteoric rise of cryptocurrencies, but the technology that is used to mine them. Two central banks — Bank of Canada and the Monetary Authority of Singapore (MAS) — have moved in this direction by creating their own digital currencies.
In June last year, Bank of Canada introduced the CADcoin. MAS, meanwhile, announced Project Ubin and the creation of a Digital SGD prototype on distributed ledger technology (DLT) in November 2016.
Digital SGD and CADcoin are not alternative currencies but are instead part of tightly controlled experiments in wholesale banking where their issuance will not affect money supply. And their creation could eventually call into question the value of the bitcoin.