MAS (Monetary Authority of Singapore) has developed a blockchain-based prototype that facilitates payments to be carried out in various currencies on the same network. The prototype network, which was developed by MAS in alliance with JP Morgan and Temasek, can boost cost efficiencies for businesses. It is currently under trial to determine its potential to unite with commercial blockchain applications.

The applications that are successfully tested are being displayed at the ‘Singapore Fintech Festival,’ ‘Singapore Week of Innovation,’ and ‘Technology (SFF x SWITCH) 2019’. The development symbolizes the latest landmark for Project ‘Ubin,’ which is in its fifth phase. Project Ubin, a joint project with the fintech industry, analyses the use of blockchain and distributed ledger technology, for settlement of payments.

Phase IV of Project Ubin works on the payments network that will provide interfaces for other blockchain networks to connect and unite flawlessly. It will also offer additional features to support cases such as Delivery-versus-Payment settlement with private exchanges, conditional payments, escrow for trade, etc. Beyond technical analysis, the fifth phase of Project Ubin needs to regulate the commercial activity and value of the blockchain-based payments network.

President, Chia Song Hwee, Temasek, said, “Blockchain technology can transform business and open up new business opportunities. To better understand the effect and value of blockchain technology, we are glad to have allied with MAS and JP Morgan for the Ubin platform.”

To date, MAS and its partners have committed to more than 40 financial and non-financial firms to explore the possible benefits of the network. Sopnendu Mohanty, Chief Fintech Officer, MAS, said, “There is growing evidence that blockchain-based payments networks can boost cost efficiencies and develop new opportunities for businesses. We hope this development will inspire other central banks to conduct similar tests, and we will make the technical stipulations publicly accessible to accelerate these efforts.

We look forward to associate with new blockchain networks to boost cross-border connectivity. It will be a big step towards making cross-border transactions faster, economical, and safer.”

Accenture has been assigned to disclose the project report in early 2020. The report will narrate the blockchain use cases that would advance from the blockchain-based payments network and set out additional features that the system could provide.