In collaboration with J.P. Morgan and Temasek, the Monetary Authority of Singapore (MAS) has successfully developed a blockchain-based prototype that enables multi-currency payments.
This novel platform has the potential to improve cost efficiencies for businesses, MAS said in a press statement.
“We hope this development will encourage other central banks to conduct similar trials," said Sopnendu Mohanty, Chief FinTech Officer, MAS.
Singapore's central bank will be making the technical specifications publicly accessible to accelerate these efforts.
"We look forward to linking up with more blockchain networks to improve cross-border connectivity. This will be a big step forward in making cross-border transactions faster, cheaper, and safer," he added.
The product is currently undergoing industry testing to determine its ability to integrate with commercial blockchain applications. Applications that were tested successfully will be showcased at the Singapore FinTech Festival and Singapore Week of Innovation and TeCHnology (SFF x SWITCH) 2019.
This development marks the latest milestone for MAS' Project Ubin which is into its fifth phase. Building on the work of Phase 4 of Project Ubin, the payments network will provide interfaces for other blockchain networks to connect and integrate seamlessly.
Beyond technical experimentation, the fifth phase of Project Ubin sought to determine the commercial viability and value of the blockchain-based payments network.