The Bank of Ghana (BOG) and the Monetary Authority of Singapore (MAS) have successfully concluded a proof-of-concept for the Digital Economy Semi-Fungible Token (DESFT) project, as reported by local media. This collaborative initiative aims to facilitate trade among micro, small, and medium enterprises (MSMEs) in both countries.
As part of the project, real-time transactions have been executed between the participating parties, leveraging the Universal Trusted Credentials Semi-Fungible Token Protocol developed by the United Nations Development Programme. Ample FinTech, a Singapore-based company identifying itself as the developer of DESFT, revealed that the token incorporates verified licenses, certificates, and transaction records.
Exchange transactions within the project are facilitated by a stablecoin pegged to the Singapore dollar (XSGD) and BOG's e-cedi central bank digital currency (CBDC) through the Purpose Bound Money protocol on a distributed ledger. The Purpose-Bundled Currency Agreement, jointly developed by MAS, the International Monetary Fund, and the central banks of Italy and South Korea, combines programmable currency and payments technology, with Amazon and other international retailers having tested it. Kwame Oppong, Director of Fintech and Innovation at the Bank of Ghana, presented the project's progress at the 3i Africa Summit in Accra, stating:
"After nearly a year of development in two phases, we have developed a reliable information exchange solution based on the UTC standard and semi-fungible token technology [...] and conducted real transaction experiments, which is fully in line with our intended The goal."
Oppong also highlighted that forthcoming advancements in the project will prioritize supply chain finance and cross-currency payments.
Media coverage provides limited insights into semi-fungible token technology, with Ample FinTech indicating its operation on the ERC-3525 standard atop the Ethereum blockchain.
A scheduled panel discussion during the Singapore FinTech Festival in November is anticipated to shed further light on the digital economy semi-fungible token, emphasizing its unique capability to amalgamate NFT and traditional blockchain information to facilitate self-ownership tokenization through DESFT.
