The Monetary Authority of Singapore (MAS) has announced that it is ready to deploy its multi-currency blockchain payments project “Project Ubin” for commercial use.
It has been reported that MAS first undertook Project Ubin in 2017 with plans to first develop a digitized Singapore dollar (SGD).
However, the next steps involved exploring blockchain and distributed ledger technology (DLT) to build a system for the clearing and settlement of payments and securities using digital SGD.
For the final phase of the project, MAS worked in collaboration with the Singapore-based investment company Temasek and the American investment bank JPMorgan.
It has been analyzed that MAS had successfully completed the development of the payments network prototype in November 2019, as the authority has since been testing the system for its ability to function smoothly with commercial blockchain applications.
The official announcement of MAS stated that the payments network will provide an interface for “other blockchain networks to connect and integrate seamlessly.”
Likewise, Reuters reported that among other use-cases, the system will allow for faster and cheaper cross-border payments in multiple currencies, foreign currency exchange, and settlement of currency-denominated securities.
Thus, last month, Ravi Menon, the Managing Director of the MAS, stated that the country was planning to work in close collaboration with China to experiment with a central bank digital currency.