Singapore Monetary Authority develops prototype for cross-border payments

The Monetary Authority of Singapore has announced a collaboration with banking giant JP.Morgan todevelopment of a prototype based on blockchain for cross-border payments in different currencies.

J.P.Morgan has always been bullish on blockchain technology and cryptocurrencies. And this partnership with MAS will allow the banking giant to make payments in multiple currencies on one network. Investment company Temasek Holdings is also part of the new MAS venture.

Sopnendu Mohanty, head of the fintech department at MAS, said that the agency intends to build its own network by linking it with several others. Mohanty also said:

We hope this will encourage other centralbanks conduct similar tests. The new solution will be a big step forward in the direction of faster, cheaper and safer cross-border payments.

In order to integrate with commercialbanking applications, the prototype is currently undergoing industrial testing. Successfully tested applications will be presented at the Singapore Fintech Festival and Singapore Innovation and Technology Week (SFF x SWITCH) 2019.

Previously, MAS presented the Ubin project, which wasdesigned to study distributed ledger technology [DLT], primarily focused on authorization and settlement. The latest prototype will take the project into its fifth phase, which will “determine the commercial viability and value of a blockchain-based payment network.”