Singapore is likely very much in the game of crypto and blockchain. The country’s central bank, The Monetary Authority of Singapore (MAS) have developed a blockchain-based prototype for cross-border payments in collaboration with investment banking giant JPMorgan and Temasek.
The newly developed prototype on top of blockchain technology is a multi-currency payment network, with the potential to settle the payment made in different currencies on the same network. Accordingly, the parties involved in the payment network believes that the network will improve cost-efficiencies for businesses.
At the moment, the prototype is undergoing industry testing to determine the loopholes and other aspects ahead of integrating with commercial blockchain applications. Temasek is an investment firm and is owned by the government of Singapore while JP Morgan is an investment bank that earlier announced the launch of its own cryptocurrency, JPM Coin. Moreover, the report reveals that the prototype is a part of the fifth phase of the DLT-based project called “Project Ubin”. Started back in November 2016, Project Ubin was designed to use the distributed ledger Technology/blockchain technology for clearing and settlement of payments and securities.
Commenting on the blockchain-based prototype, Sopnendu Mohanty, chief fintech officer of MAS said;
“There is growing evidence now that blockchain-based payments networks can enhance cost efficiencies and create new opportunities for businesses,”
Notably, a similar effort is already pushed by enterprise blockchain payment firm, Ripple with the integration of XRP cryptocurrency but MAS with banking giant seeks to conduct cross border payments using central bank digital currency.
Furthermore, MAS expects to publish the detail report on Project Ubin and its use cases using blockchain for payment as well as securities in early 2020. And notably, the announcement of the same will be processed by Accenture.
“J.P. Morgan is excited to be an infrastructure partner of MAS and Temasek for Phase 5 of Project Ubin. By leveraging our key learnings from building the Interbank Information Network® (IIN) and the JPM Coin, J.P. Morgan is well-positioned to support the development of a blockchain-based payments network and operate at scale,” stated John Hunter, global head of clearing and IIN at JPMorgan.
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