The Monetary Authority of Singapore (MAS) revealed in a joint statement with Temasek the successful completion of the fifth and final stage of Project Ubin. The report presents an overview of the multi-currency payment system for cross-border settlements based on the blockchain. The report also provides insights into how the prototype of payments could help both the financial sector and the blockchain industry.
Benefits of the blockchain payments system
The payment network prototype created in partnership with Temasek and JP Morgan could facilitate faster and less costly cross-border money transfers. In addition, MAS noted that the technical details of the functionalities of the blockchain payment system and the connectivity interfaces would be publicly available to promote further innovations.
During phase 5 of Project Singapore’s Blockchain Payment Ubin, blockchain payment networks have completed payments in different currencies on the same network. Payment watchdogs pointed out that an international payment system modeled on their prototype could boost payment time and allow cheaper transaction fees than traditional global transfer models.
In use cases such as Delivery-versus-Payment (DvP) using digital currencies held in private exchanges, the application of smart contracts on the blockchain payment network was confirmed. Chief FinTech Officer of MAS, Mr. Sopnendu Mohanty, commented on the new prototype, noting that the regulator is anticipating further adoption and implementation of blockchain technology.
Singapore watchdog bracing for more blockchain adoption
Moving forward, the joint report by Temasek and the MAS claims that the commercial use cases of the blockchain payment network include cross-border payments in multiple currencies, foreign currency exchange, and settlement of foreign currency-denominated securities.
In conclusion, the watchdog noted that the payments prototype could be linked with other platforms based on the blockchain to facilitate full digitization across as many sectors and applications as possible.