After four years of creation, Singapore’s blockchain multi-currency payment network now ready for commercial use.
Monetary Authority of Singapore (MAS), which is the central bank of the country, confirmed this Monday the finalization of the fifth and final phase of its blockchain-based payment network, called Project Ubin.
As stated in the official report, as the final phase of the project is finished, the blockchain-based payment network is ready for the “commercial adoption”. According to Sopnendu Mohanty, Chief Fintech Officer at MAS:
Following the successful experimentation over five phases, we look forward to greater adoption and live deployment of blockchain technology.
A collaborative project among MAS, state-owned investment company Temasek, and financial giant JPMorgan started back in 2016 to explore the use of blockchain and Distributed Ledger Technology (DLT) for the clearing and settlement of payments and securities.
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The Project Ubin aimed to investigate the blockchain technology and the potential benefits it may bring in order to develop alternatives to systems based on central bank-issued digital tokens. The network prototype, meanwhile, examined the use of blockchain technology across various industries, as well as ways in which installed applications could be useful.
After the final phase has been completed, Singapore’s multi-currency payment network will be capable to enable faster and cheaper transactions compared to conventional cross-border payments channels.
Reportedly, its commercial use cases will include cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency securities as well as integration with other blockchain-based platforms.
Singapore is one of the blockchain key hubs in Asia with a positive attitude towards innovative technologies. The country’s blockchain industry has grown by more than 50% over the last year and currently contains over 200 blockchain companies. Furthermore, Singapore works towards boosting cryptocurrency usage by introducing the Payment Service Act this year, which intends to enhance the regulatory framework for payment services and strengthen consumer protections in the country.
