Singapore’s Central Bank, the Monetary Authority of Singapore (MAS) has partnered with investment banking giant JP Morgan and developed a blockchain prototype for cross-border payments.
Payment Settlements Using Different Currencies On Single Network
The prototype will enable payment settlements using different currencies on the same network. For the same, Temasek, an investment firm owned by the government of Singapore will support MAS and JPMorgan’s initiative.
The prototype comes as a part of Project Ubin’s fifth phase. The latter was started in November of 2016 by MAS in collaboration with Singapore’s financial services industry for exploring blockchain-based payment settlements and securities.
To date, MAS and its partners have engaged with more than 40 financial and non-financial firms to explore the potential benefits of the network.
“There is growing evidence now that blockchain-based payments networks are able to enhance cost efficiencies and create new opportunities for businesses,”
said Sopnendu Mohanty, chief fintech officer of MAS.
Technical Specifications Will Be Made Available in Early 2020
The technical specifications of the project will be made accessible to the public in early 2020 by Accenture. The report will describe the blockchain use cases that would benefit from a blockchain-based payments network and set out additional features that the network could provide. Furthermore, the technical specifications for the connectivity interfaces have been developed and will be released for public access under Apache License Version 2.0.
From The Global Head’s Desk
“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,”
said John Hunter, global head of clearing and IIN at JPMorgan.
Will Other Central Banks Follow the Same Suit?
It is likely that MAS’s efforts are replicated by central banks and they also conduct similar trials. MAS seeks to partner with more blockchain networks for improving cross-border connectivity.
On the 10th of October, the National Bank of Cambodia (NBC) partnered with Malaysian Maybank with an aim to bring innovation in cross border payment and remittance. Cambodian citizens working in Malaysia often spend 10-15% transaction fees on cross border transfers, which makes for a significant proportion of their wages. But, with the
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