MAS completes multi-currency blockchain testing
The Monetary Authority of Singapore (MAS) has completed its fifth and final testing phase for a multi-currency blockchain payments network.
MAS believes the prototype could change cross-border multi-currency payments
Codenamed Project Ubin, the blockchain network is jointly developed with JP Morgan and investment firm Temasek.
MAS announced the fifth phase of the project on 11 November 2019, following the successful development of a blockchain-based prototype for multi-currency payments.
Phase five of the test saw payments successfully settled in different currencies on the same network.
It validated the use of smart contracts on the payments network prototype for settlement, conditional payments and escrow for trade.
MAS believes that the prototype could enable faster and cheaper transactions than “conventional cross-border payments channels”.
The regulator adds that its current system can serve as a test network for collaboration with other central banks for developing “next generation cross-border payments infrastructure”.
To that end MAS has made technical specifications public to “further industry development”.
“As with all innovation adoption, there is a time for experimentation, and a time for commercialisation,” says Sopnendu Mohanty, chief fintech officer at MAS.
“Project Ubin has worked with the financial industry and blockchain community on a journey of experimentation, prototyping and learning.
“Following the successful experimentation over five phases, we look forward to greater adoption and live deployment of blockchain technology.”
Related: MAS launches $1.25m fintech challenge to tackle climate change & COVID-19
