Singapore central bank to use blockchain in new payments system

The Monetary Authority of Singapore (MAS) has completed a new cross border payment system that can handle a wide range of currencies. This new system was built using blockchain technology and was developed as part of the Project Ubin initiative.

In a release by the MAS, they explained that the new project was developed in collaboration with JPMorgan and Temask, with a goal of improving cost efficiencies for businesses that deal in multiple currencies.

The platform is currently being tested to determine how easy it will be to integrate it with other commercial blockchain applications. It has already been tested with a few selected applications, according to the central bank.

The eventual goal of this system will be to issued digital tokens or central bank digital currency (CBDC). Initial test revealed the platform has been quite successful and the results of the second, third, and fourth phases of testing should be revealed early in 2020. The report will include the results of testing, and will also add the benefits of the blockchain-based network and additional features the network will provide.

This project has been in the developmental phase for over three years now. The second phase of the project was first announced in 2017. The original focus of the project was to digitize the Singapore dollar using blockchain technology. After initial tests proved to be positive, especially related to settlement systems showing real-time information, the developers included a new group of applications to test with the platform.

Ubin is now ready to move into its fifth and final stage, which “will provide interfaces for other blockchain networks to connect and integrate seamlessly.”

The final stage will include partnering with 40 companies from the finance and banking industries to determine the viability of the platform and commercial applications.