The shadow of cryptocurrency is covering cities, companies and every other aspect in a gradual manner. Perceiving the benefits of decentralized transferring system, central banks around the world are accepting this space. Today the news is regarding the adoption of blockchain system by the central bank of Singapore.
MAS, the Monetary Authority of Singapore, have developed a blockchain-based cross-border payments system with an eye to support a range of currencies. This development of blockchain came upon with the hand of Ubin initiative, which is a collective project with industry partners with a view to exploring the use of Distributed Ledger Technology for the clearance and settlement of payments and securities.
It was developed to cut costs for businesses and to measure its capability with various commercial blockchain applications. MAS and a group of major banks were tested were previously tested with R3 and Deloitte. They wanted to look at the tech’s potential with an eye to supporting a real-time gross-settlement system. They also want to digitalize Singapore dollar through the use of dollars.
MAS, on the fifth phase of Ubin project, try to bring about some additional features that will keep themselves at peak-point compared to other exchanges. The prototype was designed to provide DvP, delivery-versus-payment, settlement with private exchanges, conditional payments and escrow and payment commitments for trade finance.
With an eye to accelerating efforts they are willing to make the technical specifications publicly accessible. To improve cross-border connectivity they will link up more blockchain networks. They think these will make cross-border transactions faster and safer. More than 40 companies are trying to ascertain the commercial viability and overall value of the platform. John Hunter of JPMorgan said by leveraging their key learnings from building the Interbank Information Network and the JPM Coin, J.P Morgan is well-positioned to support the development of a blockchain-based payment network and operate at scale.