The Bank for International Settlements has picked Singapore as one of three sites where it will set up the first wave of innovation hub centers.
In addition to Singapore, Bank for International Settlements (BIS) will also open innovation hubs in Basel, Switzerland, and Hong Kong, followed by centers in the Americas and Europe in the second phase of implementation. The purpose of the innovation hubs is to identify and develop deep insights into critical trends in central banking technology, develop public goods in the technology space to improve the global financial system, plus serve as a focal point for a network of central bank experts on innovation.
«The establishment of the BIS innovation hub will enable central banks to extend their existing collaboration with a view to identifying relevant trends in technology, supporting these developments where this is consistent with their mandate, and keeping abreast of regulatory requirements with the objective of safeguarding financial stability,» said Jens Weidmann, chairman of the BIS board of directors.
Developing Technology Architecture
The move by the BIS to set up a center in Singapore reflects the city-state's position as a leading international fintech center, with an advanced fintech ecosystem, the MAS said in a statement on Sunday. Working with other central banks, the Singapore hub center strives to develop the technology architecture for an efficient and secure digital global financial system and facilitate experiments in the application of technology to enhance financial regulation.
«A wave of technological innovations is sweeping across financial services. To fully harness the benefits of these innovations while ensuring the resilience of the financial sector, central banks must also innovate - to modernize the technology infrastructure and regulatory arrangements that underpin digital finance and the digital economy,» said Ravi Menon, MAS managing director in the statement.
«The BIS innovation hub initiative provides a compelling platform for central banks to collaborate in this effort, so as to maximize the benefits of cross-border digital connectivity and commerce. MAS looks forward to working closely with the BIS and the global central banking community to advance this visionary and important agenda,» Menon added.
