The completion of the Digital Economy Semi-Fungible Token (DESFT) Project by the Bank of Ghana (BOG) and Monetary Authority of Singapore (MAS) has been reported by various local press outlets. The primary objective of the project is to promote trade between micro, small, and medium enterprises (MSMEs) in both countries.
As part of the project, live transactions have been conducted between the two sides. To facilitate this, the Universal Trusted Credentials semi-fungible token protocol, developed by the United Nations Development Program, was utilized. Ample FinTech, a company based in Singapore, identified itself as the developer of the DESFT and confirmed that the token contained verified licenses, certificates, and trade records.
For the exchange of goods and services within the project, a stablecoin pegged to the Singapore dollar (XSGD) and the BOG’s e-cedi central bank digital currency (CBDC) were employed. This was done through a Purpose Bound Money protocol on a distributed ledger.
The Purpose Bound Money protocol was developed by MAS in collaboration with the International Monetary Fund, as well as the central banks of Italy and South Korea. It incorporates programmable money and programmable payment technology and has undergone testing by major international retailers, including Amazon.
During his presentation at the 3i Africa Summit in Accra, Kwame Oppong, the Director of Fintech and Innovation at the Bank of Ghana, provided insights into the project. He mentioned that future developments would focus on supply chain finance and payments across multiple digital currencies.
Details about the semi-fungible token technology were scarce in the press. Ample FinTech revealed that it operates on the ERC-3525 standard on the Ethereum blockchain.
According to an announcement for a panel discussion scheduled for the Singapore Fintech Festival in November, the Digital Economy Semi-Fungible Token combines non-fungible tokens (NFTs) with traditional blockchain information. This enables the tokenization of self-ownership through the DESFT.
The e-cedi is currently in its pilot phase, and no official launch date for the CBDC has been announced.
Magazine: Bitcoin in Senegal: Why is this African country using BTC?