May 15, 2021

Singapore Monetary Authority develops prototype for cross-border payments

Singapore Monetary Authority develops prototype for cross-border payments

Singapore Monetary Authority Announces Partnership With Banking Giant JP.Morgan development of a prototype based on blockchain for cross-border payments in different currencies.

JP.Morgan has always been optimistic about blockchain technology and cryptocurrencies. And this partnership with MAS will allow the banking giant to make payments in several currencies on the same network. Temasek Holdings investment company is also part of the new MAS.

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

We hope that this will encourage other centralbanks conduct similar tests. The new solution will be a big step forward in the direction of accelerating, reducing the cost and security of cross-border settlements.

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.

MAS previously introduced the Ubin project, which wascreated to study the technology of distributed registries [DLT], primarily focused on authorization and calculations. The latest prototype will lead the project to its fifth phase, which "will determine the commercial viability and value of the payment network based on the blockchain."