Singapore remains firmly committed to technological progress in the financial sector. The country’s central bank, Monetary Authority of Singapore (MAS), revealed its decision to invest up to S$150 million to support a diverse range of solutions leveraging emerging technologies, including Web3.
Singapore’s central bank safeguards technological innovation
To accelerate financial innovation in Singapore, the country’s central bank, MAS, a press release its intention to allocate S$150 million, equivalent to US$112 millions. It will take place over three years to its renewed Financial Sector Technology and Innovation (FSTI) program. This program aims to strengthen innovative projects that exploit advanced technologies. It has several key components, including Enhanced Center of Excellence, a section dedicated to financial, environmental, social and governance (ESG) technologies), as well as a track dedicated to the acceleration of innovative ideas, particularly those linked to Web3.
The first track, Enhanced Center of Excellence, will provide financial support of up to 50% for venture capital companies of eligible expenses and a maximum of $2 million per project. This funding will encourage the growth of startups towards sustainable models.
To accelerate innovation with emerging technologies such as Web3, the MAS joins forces with industrial partners to find innovative Fintech solutions. Grants will facilitate practical testing and commercialization.
The ”FinTech Environment, Society and Governance” (ESG), the third axis of the FSTI 3.0, promotes solutions focused on Fintech and ESG. It supports the development of projects that meet financial needs for ESG data and analysis, with grants of up to 50% of costs, capped at S$500,000 per project.
Technological Advances and Financial Innovations: FSTI 3.0 Initiatives and the MAS Commitment
At the heart of ITSF 3.0 is also support for transformative technologies such as Artificial Intelligence and Data Analytics (AIDA), as well as Regulatory Technology (RegTech). The MAS highlights the promotion of AIDA within small financial companies and those less accustomed to solutions RegTech.
Ravi Menon, General Manager of MAS highlighted revolutionary technological projects initiated jointly with industry, such as SGFinDex, Purpose Bound Money, responsible AI and sustainable finance initiatives via Project Greenprint including the cross-border payment link with Thailand.
By targeting innovative technological projects, this approach is in line with a global movement where many countries are investing heavily to encourage technological progress, following the example of the Web3.
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