Singapore to Adopt its Blockchain-based Multi Currency Payments Network

After successful trial of Project Ubin, Singapore to adopt the blockchain-based Multi currency Prototype according to Senior Minister, MAS.

By · Sep 7, 2020 . 6min read

Blockchain based Payment Network Singapore news
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The Monetary Authority of Singapore announced the conclusion of its multi-currency payment network pilot test. It said that the prototype is a success. The prototype was phase five of Project Ubin, a suite of experiments that began by concentrating on central bank digital currencies (CBDC). The final phase allowed multiple fiat currencies to endure on the same payments network, issued by either central banks or commercial banks.

In association with project partners, Accenture and JP Morgan, MAS, and sovereign wealth fund Temasek issued a report titled “Project Ubin Phase 5: Enabling Broad Ecosystem Opportunities “. The aim was to demonstrate the feasibility of more durable and cheaper transactions, including cross-border payments in Singapore. The transaction savings are not for the amount itself. As in many cases, such a system reduces the business transaction cost to which the payment relates.

Singapore’s Multi-Currency Prototype Practical Applications

Accordingly, the report about Phase 5 Ubin had no mention of its practical applications. However, a Member of Parliament, Saktiandi Supaat, has solicited clarity concerning the prototype’s future utilization. Saktiandi Supaat asked about the development of Project Ubin after the trial conclusion. He inquired about the steps to be taken for live adoption of a blockchain-based multi-currency payments network prototype. He also intends to know when will multi-currency prototype launch in Singapore.

According to Senior Minister and Minister in Charge of the Monetary Authority of Singapore (MAS), Tharman Shanmugaratnam, the Project is developing. He said that Project Ubin is a collaborative effort by MAS to examine blockchain technology utilization. It explores how blockchain can clear and settle payments and securities efficiently. He further elucidated that this Project will bring out the advantages of blockchain technology. Earlier, Cryptodose also reported on how MAS was keen with regulatory measures relating to digital token services overseas.

Recently, almost 40 financial institutions, Fintechs, and technology firms have joined hands for the project in Singapore. He adds that the technical documentation and source codes are issued to promote commercial applications. Some industry players have also communicated interest in leveraging project learning to develop a live commercial offering for multi-currency payments.

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