Singapore Launches Digital Dollar Pilot With Four Major Banks
Singapore Tests Retail CBDC
The Monetary Authority of Singapore has launched a pilot program for a retail central bank digital currency, the digital Singapore dollar. Four banks — DBS, OCBC, UOB, and Standard Chartered — are participating in the initial phase, which will test programmable payments, offline transactions, and cross-border settlement.
MAS Managing Director Ravi Menon said the pilot builds on years of wholesale CBDC research under Project Ubin. "A retail CBDC must work for every Singaporean, including those who are less digitally literate. That is a fundamentally different challenge than interbank settlement," Menon told reporters.
How It Works
The digital Singapore dollar will be distributed through the participating banks' mobile apps. Users can hold up to SGD 5,000 ($3,700) in their digital wallets during the pilot phase. The currency is fully backed by reserves held at MAS and carries the same legal tender status as physical notes.
A key feature being tested is programmable payments — smart-contract-like conditions that can be attached to transactions. For example, government subsidies could be issued as digital dollars that can only be spent at approved merchants or within a specified time window.
Offline Capability
The pilot includes near-field communication (NFC) based offline transactions, allowing users to transfer digital dollars without an internet connection. This addresses a common concern about digital currency dependence on connectivity and is particularly relevant for disaster preparedness scenarios.
DBS chief digital officer Jimmy Ng said the offline feature "ensures digital money works when you need it most — not just when everything is working perfectly." DBS is providing the primary technology stack for the offline transaction module.
Regional Context
Singapore's pilot joins a growing list of CBDC projects across Asia. China's digital yuan is in advanced trials with over 260 million wallet users. Thailand, Japan, and South Korea all have active CBDC research programs. India's digital rupee pilot covers over one million users.
MAS has said it will evaluate the pilot results over 12 months before deciding whether to proceed to a broader rollout. Menon emphasized that a retail CBDC "is not a foregone conclusion — the pilot must demonstrate clear benefits over existing payment systems like PayNow and NETS."
