The Monetary Authority of Singapore (MAS), which serves as the central bank, has developed a blockchain-based prototype for multi-currency international payments, together with state-owned investment firm Temasek Holdings and JPMorgan Chase, to improve cost efficiencies for businesses, shared MAS in press release on November 11.
According to MAS chief fintech officer Sopnendu Mohanty, the project is a “big step forward” in solving the deficiencies of cross-border transactions, since the solution offers “faster, cheaper, and safer” ways to improve “cross-border connectivity” for businesses. Additionally, the blockchain system is planned to be used for the clearing and settlement of payments and securities, reads the press release.
The prototype was developed as part of the Project Ubin, during the next phase of which participants will determine the commercial viability of the system, together with more than 40 financial and non-financial firms. According to Chia Song Hwee, president and chief operating officer of Temasek, the applicability of the technology goes “beyond capital markets and trade finance”.
The successfully tested applications will be shown during the Singapore FinTech Festival and Singapore Week of Innovation, running from November 11 to November 15. International consulting firm Accenture was commissioned to publish the project report in early 2020. Sopnendu Mohanty also shared hopes that MAS’s example “will encourage other central banks” to facilitate trials of blockchain technology.
As COIN360 reported earlier, on February 14 JPMorgan became the first major US financial institution to launch its very own cryptocurrency, JPM Coin.