Central Banks of Canada and Singapore Complete DLT Trial

Central Banks of Canada and Singapore Complete DLT Trial

It is always exciting when central banks seem to endorse blockchain technologies.

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It is always exciting when central banks seem to endorse blockchain technologies. The latest were the Monetary Authority of Singapore (MAS) and the Bank of Canada. These two successfully completed a cross-border transaction, which was part of the so-called “Project Jasper-Ubin”.

Indeed it was MAS that revealed the news earlier this week:

“The two central banks have successfully linked up their respective experimental domestic payment networks, namely Project Jasper and Project Ubin, which are built on two different DLT platforms. The project teams used a technique called Hashed Time-Locked Contracts (HTLC) to connect the two networks and allow Payment versus Payment (PvP) settlement without the need for a trusted third party to act as an intermediary.“

Jasper-Ubin was also conducted with help from Accenture and JP Morgan. Furthermore, the separate projects ran on different networks – persmissioned versions of Corda and Quorum. Put simply, banks are already hopping on the blockchain train while bashing cryptocurrencies at the same time. Yeah, as ironic as it sounds this is the truth.

Scott Hendry, Bank of Canada Senior Special Director, Financial Technology, explained:

“The importance of international cooperation through projects such as this one cannot be underestimated. Only through continued collaboration and fundamental research will it be possible for this technology to mature and for policy-makers to fully understand its potential.”

In related news, two men have been convicted of money transfer fraud in New York. According to US attorney Geoffrey Berman, Reginald Fowler (US) and Ravid Yosef (Israel) “processed hundreds of millions of dollars of unregulated transactions on behalf of cryptocurrency exchanges.”

Both Fowler and Yosef are charged with one count of conspiracy to commit bank fraud and one count of bank fraud. They may face up to 30 years in prison in case the court finds them guilty. Their joined business Crypto Companies misled financial institutions that it actually uses bank accounts to invest in real estate.

“Lying to banks and skirting the regulations put in place by the banking industry is a violation of federal law, a crime both Fowler and Yosef are charged with today,“ said FBI agent William Sweeney.