How Did Singapore Become So Rich? Singapore’s Economic Secrets
The Monetary Authority of Singapore (MAS) has developed a prototype blockchain-based system that allows cross-border payments in different currencies on the same network.
Investment companies JPMorgan and Temasek also took part in the creation of the platform. The system is currently being tested to determine its potential for integration with commercial blockchain applications..
The payment network will provide interfaces to connect other DLT-based networks as well as offer additional functionality for various use cases such as DvP (delivery versus payment) settlement with private exchanges, escrow payments and escrow for trading, and payment obligations for trade finance.
The Monetary Authority of Singapore hopes that this project will provide an incentive for other central banks to conduct similar trials, thus making the technical specifications publicly available. Project report describing possible use cases for the multicurrency system will be prepared by the consulting company Accenture in early 2020.
According to Sopnendu Mohanti, director of fintech division of MAS, blockchain-based payment networks can increase economic efficiency and create new business opportunities., at the expense of reduction in price, increase speed and security of cross-border transactions.
The development of a related area is stimulated by the Bank for International Settlements, which announced in October on the opening of new operating centers for blockchain research in Switzerland, Hong Kong and Singapore.
text: Ivan Malichenko, photo: Reuters