As the most disruptive innovation since 2008, blockchain has made great impact to global capital market and other industries. Aiming to learn more about the development of blockchain projects and to explore how this new technology would change the traditional industries, we went to Singapore from July 9th to July 13th and visited various participants in blockchain ecosystem including regulators, traditional financial institutions, industrial associations, academic institutions, cryptocurrency exchanges and multiple blockchain startups.
As one of the most important cities in the development of the global blockchain, Singapore is inseparable from the support of innovation by regulators, the cultivation of innovative talents in universities and the tolerance of new financial technologies by traditional financial enterprises. It is worth pointing out that the blockchain is a technology with a wide range of applications. Blockchain technology and ecology are still evolving, and there is great potential for infrastructure upgrading, consensus mechanism design and application mode innovation.
Here are the details of our meetings with Monetary Authority of Singapore, Singapore Fintech Association, Standard Chartered Bank, ACCESS, Singapore Exchange, NUS School of Computing and PayPal Innovation Lab. Blockchain startups and their projects will be featured in the next part. Please stay tuned!
Monetary Authority of Singapore
The monetary authority of Singapore is the central bank and financial regulator of Singapore, which regulates various regulations relating to the monetary, banking, insurance, securities and financial sectors, as well as currency issuance. Fintech and Innovation Group (FTIG) was founded in 2015. FTIG is responsible for fintech related regulatory policies and development strategies, to promote technological innovation, risk management and efficiency, thus to strengthen Singapore's competitiveness in the financial sector. It includes three sectors: Payments & Technology Solutions Office, Technology Infrastructure Office and Technology Innovation Lab.
Directors of FTIG introduced to us their main work and shared with us their views regarding the development of blockchain technology in Singapore. They pointed out that the core reason why Singapore's blockchain innovation industry is more orderly than other countries is that Singapore provides clear and specific guidance for these companies. Blockchain startups can easily find suitable rules from existing regulatory systems.
Singapore Fintech Association
Founded in 2016, Singapore Fintech Association (SFA) aims to promote collaboration among all market participants and stakeholders in the fintech ecosystem in Singapore, and works as an effective platform to help members work with multiple stakeholders to solve problems.
Bee Yen Lau Bee, the operation manager with SFA told us that in the perspective of blockchain, SFA has launched the FinTech Talent Program together with NTUC and SP which includes a specific course on blockchain. SFA also cooperates with ACCESS to conduct education and training in the field of blockchain. At present, SFA's research on blockchain technology mainly focuses on food safety, dispute resolution, and jewelry identification.
Besides, SFA cooperates with regulators like MAS to conduct consultations papers through gathering feedbacks from their members such as fintech startups annually, and then sends results back to MAS to help formulate regulations and industry standards.
Standard Chartered Bank
Founded in 1853, Standard Chartered Bank (SCB) is an international banking group which is based in London. It is a good chance to know how traditional financial institutions understand and apply blockchain.
Jennifer McAuliffe from eXellerator Lab told us that they have already cooperated with more than a dozen institutions in applying DLT technology in trade finance. Besides, SCB and HSBC have established a trade finance platform based on DLT technology.
ACCESS: Singapore Cryptocurrency and Blockchain Industry Association
Founded in 2014, ACCESS is a Singapore cryptocurrency and blockchain industry association. Its members represent a range of businesses in Singapore's cryptocurrency and blockchain sectors. ACCESS have more than 250 member units currently.
We met with Anson Zeall, the chairman of ACCESS. He said ACCESS has been acting as a bridge to connect regulators and cryptocurrency and blockchain enterprises. Regarding the regulation of cryptocurrency, Anson believes that some items of tokens should not be regulated. If the tokens are only used in its own ecosystem, then KYC is not necessary.
Singapore Exchange
The Singapore Exchange (SGX) is the first joint-stock exchange in the Asia Pacific region that combines securities and financial derivatives trading. MAS has conducted the Ubin project to collaborate with the industry and explore the application of DLT in the inter-bank settlement. SGX is one of the main participants in Ubin project.
We were excited to meet with Andrew Koay and Peter Shen at Singapore Exchange. Andrew told us that, as a major participant in the second phase of the Ubin project, SGX is planning to apply blockchain to bond trading and to use the central bank digital currency for cross-border payments in the next phase.
School of Computing, National University of Singapore
Founded in 1998, NUS Computing has a long history of developing digital economy and IT leaders. The Institute's internationally renowned teachers conduct research in areas such as artificial intelligence, database management, programming languages and software engineering.
We had a deep conversation with professors from NUS Computing. As an important part of their Blockchain programs, NUS Computing has been cooperating with IBM to share practical experiences with students, which emphasizes the importance of students' practice ability. In addition, the college has also established short-term blockchain training programs for blockchain practitioners and those who are interested in blockchain.
PayPal Innovation Lab
Established by PayPal, PayPal Innovation Lab is the first laboratory that collaborates with the government, industry institutions, SMEs and colleges in Singapore. PayPal Innovation Lab provides a one-stop innovation platform for startups, developers, students and innovators, with participants ranging from small business owners to the most experienced corporate founders.
Yoke Yong (YY) LAI, Lead-Startups and Incubation of PayPal Innovation Lab, said that their major business covers three parts: FinTech R & D, PayPal Incubator and SME Outreach. In PayPal Incubator, it is currently in the third period which includes four blockchain startups.When talking about the application scenarios of blockchain startups, LAI pointed out that the blockchain is still in the experimental stage, and they are optimistic about the application of blockchain technology in community management, credit incentive, foreign exchange settlement, identity authentication and other aspects.
