MAS joins Mojaloop Foundation to promote financial inclusion among the underserved

THE Monetary Authority of Singapore (MAS) is joining the Mojaloop Foundation as a sponsor-level member - making it the first central bank to do so - to advance financial inclusion in emerging economies.

This will be done via digital currency-based settlement systems and foundational digital infrastructure, MAS and the Mojaloop Foundation said in a joint release on Wednesday. The collaboration is also expected to deliver opportunities for fintech players in Singapore and the broader Asia-Pacific.

A charitable non-profit organisation, the Mojaloop Foundation aims to enhance the economic well-being of the 1.7 billion unbanked adults worldwide through financial inclusion. Its open-source software acts as a basis for organisations to build inter-operable digital payment systems and enable digital financial services.

MAS will provide policy perspectives and technical guidance, building on its experience with Project Ubin's Central Bank Digital Currency (CBDC) development efforts, the release said. Project Ubin is an industry effort exploring the use of distributed ledger technology to clear and settle payments and securities more efficiently.

MAS' chief fintech officer Sopnendu Mohanty will serve as an adviser to the Mojaloop Foundation's board of directors, while Alan Lim, the division head of MAS' fintech infrastructure office, will serve on the technical governing board.

Paula Hunter, executive director of the Mojaloop Foundation, said: "The Mojaloop Foundation is very pleased to welcome MAS to be our newest sponsor member. The Mojaloop Foundation's mission to increase financial inclusion is shaped by the potential of emerging economies to innovate and adopt efficient, interoperable domestic and cross-border applications, and MAS will bring valuable experience and expertise that will further our objectives."

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Mr Mohanty added: "Technology guided by empathy can help bring innovative solutions to real-world problems and promote an inclusive economy. MAS is excited to join the Mojaloop Foundation to support its open-source technical development and contribute expertise on digital currency-based settlement infrastructure to Mojaloop's payment system for domestic and cross-border transactions."

Other sponsor-level members include the Bill & Melinda Gates Foundation, Google, ModusBox and The Rockefeller Foundation.