The Monetary Authority of Singapore (MAS) has partnered with U.S financial giant, JP Morgan, and Singaporean holding company, Temasek to create a prototype multi-currency blockchain-based payments network.
Per a Business Times report on the development, the prototype payments system launched by the new partners will facilitate the transactions of different currencies simultaneously on the same network.
The system will, upon successful completion, allow businesses to save costs significantly according to MAS and is now being tested industrially for possible integration with other commercial blockchain-based applications.
Additionally, the developers expect that the system will be able to support additional use cases including delivery-versus-payment (DvP) settlement with private exchanges, conditional payments and escrow for trade, as well as payment commitments for trade finance.
For MAS, the new prototype system marks a noteworthy achievement for the Ubin Project which they reportedly launched to explore possible applications of blockchain technology to improve clearing and settlement of payments and securities.
While sharing his thoughts on the milestone, Sopnendu Mohanty, MAS chief fintech officer noted that they would encourage central banks to pilot such blockchain-based efforts. He reportedly said,
We hope this development will encourage other central banks to conduct similar trials, and we will make the technical specifications publicly accessible to accelerate these efforts.
Meanwhile, in a similar update about banks integrating blockchain technology, we reported in September that UK-based Lloyds Bank partnered with Kongo to enable quicker international commodity trade finance.