February 22, 2024

Central Bank of Singapore has developed a multi-currency blockchain system

Central Bank of Singapore has developed a multi-currency blockchain system

The Monetary Authority of Singapore (MAS) has developed a prototype blockchain-based system that allows cross-border payments in different currencies on the same network.

They also took part in the creation of the platform.investment companies JPMorgan and Temasek. The system is currently being tested to determine its potential for integration with commercial blockchain applications.

The payment network will provide interfaces to connect other DLT-based networks, as well as offer additional features for various optionsuse such as DvP calculations(delivery versus payment) with private exchanges, conditional payments and escrow for trading, as well as payment obligations for trade financing.

The Monetary Authority of Singapore hopesthat this project will encourage other central banks to conduct similar tests and therefore make the technical specifications publicly available. A project report describing possible options for using the multi-currency system will be prepared by the consulting company Accenture at the beginning of 2020.

According to Sopnendu Mohanty, DirectorMAS' fintech divisions and blockchain-based payment networks can improve economic efficiency and create new business opportunities by reducing the cost, increasing the speed and security of cross-border transactions.

The development of related areas is stimulated by the BankInternational Payments, which in October announced the opening of new operating centers for blockchain research in Switzerland, Hong Kong and Singapore.