Singapore Launches National Payment Network on Digital Currency Blockchain

The authorities of Singapore have announced the completion of work on a blockchain-based payment network project.Next in line —commercial launch of the Ubin network.

Monetary Authority of Singapore (MAS), bypart-time the Central Bank of the country, began work on the Ubin project in 2017. It was planned to develop a digital version of the Singapore dollar (SGD). The next steps included the study of blockchain technology and a distributed registry to build a clearing system (cashless payments between countries, companies, enterprises and banks) and settlements on payments and securities using digital Singapore dollars.

At the final stage of the project, MAS collaborated.with Singapore-based investment company Temasek and renowned US investment bank JPMorgan. Work on the prototype of the payment network was completed in November 2019. From November to July, the project was in the testing phase - the regulator tested the ability to function smoothly with commercial blockchain applications.

The system will allow faster and cheaper to implementcross-border payments in several currencies, exchange foreign currencies, as well as carry out settlements on securities denominated in foreign currencies.

Last month, Ravi Menon,MAS managing director, said the country plans to work closely with China to experiment with the central bank's digital currencies (CBDC).

Beyond Government Supportedblockchain projects, in the private sector of Singapore, blockchain and crypto innovations also flourish. Over the past 12 months in Singapore, the number of blockchain companies has grown by 50%.

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