The Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS) have successfully completed a proof-of-concept for the Digital Economy Semi-Fungible Token (DESFT) Project. This initiative aims to foster trade between micro, small, and medium enterprises (MSMEs) in Ghana and Singapore, leveraging both a central bank digital currency (CBDC) and a stablecoin.
Live Transactions and Trusted Credentials
The project conducted live transactions using the Universal Trusted Credentials (UTC) semi-fungible token protocol, developed by the United Nations Development Program. Ample FinTech, based in Singapore, identified itself as the developer of DESFT. These tokens contained verified licenses, certificates, and trade records, ensuring a secure and trusted exchange of credentials.
Exchange Using Stablecoin and CBDC
The transactions involved a stablecoin pegged to the Singapore dollar (XSGD) and Ghana’s e-cedi CBDC. The exchanges were conducted within the Purpose Bound Money protocol, which operates on a distributed ledger. This protocol, developed by MAS in collaboration with the International Monetary Fund and the central banks of Italy and South Korea, integrates programmable money and payment technology. It has been tested by international retailers, including Amazon.
Also Read: Singapore Sets New Crypto Licensing Standards: A Leap Toward Secure Digital Finance
Project Development and Future Focus
Kwame Oppong, the Bank of Ghana’s director of fintech and innovation, highlighted the project at the 3i Africa Summit in Accra. He stated:
“After nearly a year and two phases of development, we have crafted a reliable information exchange solution founded on UTC standards and Semi-fungible Token technology […] and conducted real trade experiments which fully align with our predetermined objectives.”
Oppong added that future development would concentrate on supply chain finance and payments across multiple digital currencies.
Semi-Fungible Token Technology
Details about the semi-fungible token technology were sparse. However, Ample FinTech mentioned that it operates on the ERC-3525 standard atop the Ethereum blockchain. A panel discussion scheduled for the Singapore Fintech Festival in November will further explore the DESFT. The announcement describes the Digital Economy Semi-Fungible Token as combining NFTs and traditional blockchain information to enable tokenization of self-ownership through DESFT.
Ghana’s e-cedi is currently in its pilot phase, with no official launch date announced for the CBDC.
