The Singapore and Philippine Central Banks announced an unprecedented agreement that could create a better Fintech environment between the two countries, built over blockchain tech.
Fintech Co-Operation Agreement
The Philippines’ Bangko Sentral ng Pilipinas (BSP) and the Monetary Authority of Singapore (MAS) signed the “Fintech Co-Operation Agreement“. The aim of which is to have cross-cultural sharing and promoting of financial technology in both countries.
The central banks of both the Philippines and Singapore are bounded by the agreement to collaborate and share new Fintech trends from one country to the other. The two will also collaborate to refer fintech companies to each other.
Additionally, both banks will use blockchain tech to facilitate KYC processes faster than before. (Read: What is KYC – Know your Customer – and why is it needed?)
Background – Philippine Central Bank
The Bangko Sentral ng Pilipinas is notable for being one of the first central banks in the world to issue a memorandum that effectively recognizes bitcoin as an emerging virtual currency. The BSP chose to engage and not prohibit cryptocurrency use in the country. It does issue the circular to ensure not a single amount of laundered money is injected into the circulation via the bitcoin exchange sites in the Philippines. (Read: The numerous bitcoin sites in the Philippines)
Background – Monetary Authority of Singapore
Recently, Singapore’s MAS is experimenting with blockchain tech together with the Hong Kong Monetary Authority to digitize financial trade through the Hong Kong Trade Finance Platform. This is part of an ongoing trial whose final aim, if successful, is for Singapore to launch their own cryptocurrency.