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Singapore, UK Boost Fintech Ties: Crypto, CBDCs, Tokenisation on the Agenda

At the 8th UK-Singapore Financial Dialogue in London, the two nations discussed the latest developments in the digital space, with a particular focus on crypto and digital assets.

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Buckle up folks, 'cause the fintech express just got a turbo boost. The United Kingdom and Singapore have tossed their hats into the ring, deciding to crank up the dial on their digital innovation duet, according to a press release by the Monetary Authority of Singapore (MAS) on Friday.

Both countries agreed to contribute to the development of global regulatory standards for these assets through international standard-setting bodies such as the International Organization of Securities Commissions (IOSCO). They also welcomed the Financial Stability Board's recommendations on crypto-assets, including stablecoins.

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The recommendations focus on strong governance to avoid conflicts of interest and proper risk management and disclosures to keep customer money separate from company cash to avoid an FTX-style crash.

The dialogue also touched upon Central Bank Digital Currencies (CBDCs). The UK updated on its "Digital Pound" consultation and current design phase, while Singapore shared its approach towards exploring use cases for a digital Singapore dollar. Singapore also updated on its exploration of wholesale CBDC for cross-border foreign exchange settlement.

Another significant point of discussion was Project Guardian, a private-public sector collaborative initiative by Singapore to test the potential and feasibility of asset tokenisation. Both countries agreed to consider future collaboration opportunities in this area.

The dialogue also touched upon e-wallets, with the UK welcoming the outcome of MAS’ review of e-wallet caps, including the increase to the relevant limits imposed on e-wallets, MAS said.

Seems like this isn't just a meeting of minds between the UK and Singapore. It's an audacious stride into the wild frontier of fintech, promising to redefine the contours of the digital economy. So, stay tuned as this exciting narrative unfolds.