During the ongoing FinTech Festiva, the Central Bank of Singapore released a statement revealing their partnership with the Bank of Canada to promote
During the ongoing FinTech Festiva, the Central Bank of Singapore released a statement revealing their partnership with the Bank of Canada to promote cross-border payments via the blockchain system which is an initiative bound to support money easy money transfer methods. The director of the Monetary Authority of Singapore (MAS) together with his partner at the financial regulator reported that there is a project known as the Project Ubin which is aiming at introducing the tokenized Singaporean dollar as soon as possible on the blockchain system.
Some concerns were raised on how efficient and secured the project would facilitate by achieving the above features, but the central bank said there is no need to worry. The Project Ubin applies the method used in blockchain technology to facilitate the central bank execute direct payment without the need of intermediaries instantly thus minimizing risk and at a faster rate.
The project started early this year where the first stage of the Project Ubin was tested at Ethereum blockchain. Phase later followed with the introduction of three software which facilitated interbank payments which are decentralized. This enabled settlements being achieved with liquidity savings while at the same time maintaining the privacy of transactions which is a major achievement.
Previously, the Bank of Canada had experimented its CAD-Coin in collaboration with York-based industry startup R3. The bank found that the distributed ledger technology cannot compare to the advantages of a centralized system thus deciding to continue its efforts with Singapore’s central bank which has born efficiency and success. The success has led the Singapore central bank to enroll its digital token to introduce the blockchain interbank payments platform. This move has made other central banks emulate the move, and the MAS has promised to avail the release the source codes for all three software prototypes from Phase 2 to the public enabling the central banks to develop their systems.