August 8, 2022

Singapore Central Bank and JPMorgan create a prototype blockchain system for cross-border payments

Singapore Monetary Authority (MAS) and US investment banking giant JPMorgan developed a prototype blockchain-based system for cross-border payments.

MAS reported that the prototype allows forpayments in different currencies on the same network. Singapore-based investment firm Temasek also collaborated with MAS and JPMorgan to develop a prototype.

“Now there is more evidence thatthat blockchain-based payment networks can increase economic efficiency and create new business opportunities, ”said Sopnendu Mohanty, Chief Financial Officer, MAS.

The prototype was created as part of the fifth phase of the Ubin project,which was launched back in 2016 as a result of the joint efforts of MAS and the Singapore financial services industry to study blockchain technology for clearing and settlement of payments and securities. Head of International Clearing and IIN at JPMorgan, John Hunter said:

“JPMorgan is pleased to be an MAS infrastructure partnerand Temasek for the fifth phase of the Ubin project. Using our key knowledge gained during the creation of the Interbank Information Network (IIN) and JPM Coin, JPMorgan is well placed to support the development of a blockchain-based payment network and can work according to the scale of the project. ”

MAS hopes prototype development will encourage other central banks to conduct similar tests.

“We will make technical specificationspublicly available to speed up the process. We look forward to connecting to more blockchain-based networks to improve cross-border payments. This will be a big step forward in accelerating, reducing the cost and increasing the security of international transfers, ”Mohanty said.

A detailed report on the Ubin project, which describes the use of the blockchain for payments and securities, is expected to be published in early 2020 by technology giant Accenture.

Back in 2017, MAS announced three prototypes.blockchain-based payment systems as part of the second phase of the Ubin project. Last summer, Singapore announced the development of a platform for tokenized securities under the project, and in May this year, the Central Banks of Canada and Singapore tested the blockchain for cross-border payments using Ubin technology.