We have seen a significant shift in major banking services and investment firms moving towards the acceptance of blockchain for their storage systems or payment methods. The Monetary Authority of Singapore (MAS), which is the country’s central bank, has decided to collaborate with the investment banking giant JP Morgan to develop a blockchain prototype that would help in improving the cross-border payments.
JP Morgan and MAS blockchain
The news was announced on Monday by MAS through a media release on their website where they mentioned details about the new project and how the blockchain prototype will help them carry out payments in different currencies using the same network. The government-owned investment firm, Temasek, also supports the project.
Sopnendu Mohanty, Chief Fintech Officer of MAS, further explained that blockchain-based payments networks have helped them improve the cost efficiencies and were able to create new opportunities for businesses. This prototype is part of Project Ubin, which started in November 2016 as a project to explore the potential of blockchain technology and the effects it can have on the banking services.
The project was launched as a collaboration between MAS and Singapore’s financial services industry, which would help them implement blockchain tech for clearing and settlements of payments and securities.
JP Morgan support for blockchain
Confirming the news, the global head of clearing, and IIN at JP Morgan, John Hunter, expressed their excitement and happiness for this collaboration. He further added that their expertise and knowledge from working on Interbank Information Network (IIN) and the JPM Coin would help them to guide in this development process.
MAS is also optimistic about this partnership, and they are positive that such developments would encourage the central banks to work on similar trials as well. MAS has planned to make the technical specifications public to help accelerate the efforts, and they wish to improve the cross-border connectivity.
A detailed report on Project Ubin is also expected to be published in early 2020, which would help to understand the blockchain usage for payments and securities. The report is expected to be posted by tech giant Accenture.
