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 for connecting other DLT-based networks, as well as offer additional functions for various options use such as DvP calculations(delivery versus payment) with private exchanges, conditional payments and escrow for trading, as well as payment obligations for trade financing.
Singapore Monetary Authority hopesthat this project will be an incentive for other central banks to conduct similar tests, so it will make technical specifications publicly available. A project report describing possible options for using the multicurrency system will be prepared by Accenture consulting company in early 2020.
According to Sopnendu Mohanti, DirectorMAS fintech divisions, blockchain-based payment networks can increase economic efficiency and create new business opportunities by reducing the cost, increasing the speed and security of cross-border transactions.
The development of a related area is stimulated by the Bank for International Settlements, which in October announced the opening of new operational centers for blockchain research in Switzerland, Hong Kong and Singapore.