But many of these e-wallet solutions are currently caught under two separate pieces of regulation in Singapore. MAS will streamline the licensing of payments services under a single, activity-based modular framework. This means: holding just one licence to conduct different kinds of payment activities; meeting only those regulations pertinent to the specific payments activities they undertake, rather than the full gamut of payments regulations; adhering to common standards for consumer protection and cyber security. Guidelines to Promote Secure Cloud Computing There used to be a view within some quarters that “MAS does not like the cloud”. Lest there be any lingering doubt, let me reiterate: MAS has no objections to FIs using the cloud. Cloud computing provides economies of scale, enhances operational efficiencies, and delivers potential cost savings. In fact, a secure cloud infrastructure is an enabler for a variety of FinTech innovations, including banking-as-a-service (BaaS) platforms. To put its money where its mouth is, MAS set out earlier this year specific guidelines on the use of cloud services by FIs. FIs are free to adopt private clouds, public clouds, or a combination of these to create hybrid clouds. But some of the distinguishing features of clouds – such as multi-tenancy, data commingling, and processing in multiple locations – can potentially pose issues for data confidentiality and recoverability. And so we expect FIs to conduct the necessary due diligence and apply sound governance and risk management practices to address potential vulnerabilities.

• And beyond MyInfo, we have to think of more advanced forms of KYC for more sophisticated use cases. A Blockchain Infrastructure for Cross-Border Interbank Payments Another big pain point is cross-border interbank payments. Today, banks have to go through correspondent banks to intermediate these payments. It takes time and adds to cost. MAS, the Singapore Exchange, and eight banks have embarked on a proof-of-concept project to use blockchain technology for inter-bank payments, including cross-border transactions in foreign currency. This effort is supported by the R3 blockchain research lab and BCS Information Systems Under the pilot system, banks will deposit cash as collateral with the MAS in exchange for MASissued digital currency. The banks can later redeem the digital currency for cash. Participating banks can pay each other directly with this digital currency instead of first sending payment instructions through MAS. This is an improvement over current large-value payment systems that are centrally operated. It strengthens resilience and lowers cost. The banks also have the option of using the existing common payments gateway provided by BCS Information Systems to transact on the blockchain. The banks need not rewrite their back-end systems. This practical capability rides on the advances made by OCBC Bank in its recently announced inter-bank payments pilot. This project marks the first step in MAS’ exploration of ways to harness the potential of central bank issued digital currency. The next phase of the project will involve transactions in foreign currency, possibly with the support of another central bank.