Singapore has come up with a payments network based on blockchain for the facilitation of speedy and cheaper global settlements. The authorities announced the development on July 13, noting that its commercial rollout is the next thing.
The project, known as Project Ubin, which has been on for years, involved collaboration between the Monetary Authority of Singapore (MAS) and state investor Temasek and J.P. Morgan towards the development of a prototype multi-currency payments network in its final phase.
In a joint statement from MAS and Temasek, the global settlement network modeled in line with this payments network prototype, could facilitate speedy and cheaper transactions than conventional cross-border payments channels.
The prototype’s commercial applications feature cross-border payments in a variety of currency and foreign currency exchange, as well as settlement of foreign currency denominated securities and other use cases, said in the joint statement.
According to the statement, part of the prototype network’s technical specifications will be released for everyone to access towards the facilitation of more development in the industry. The adoption of blockchain technology is presently pervading several sectors across countries.
The Infocomm Media Development Authority (IMDA) backed by a governmental agency in Singapore noted that the blockchain sector’s growth has been remarkable. According to a map published by the IMDA, an aggregate of 234 blockchain-based firms are in the country as of this month.
Last year, the number of blockchain-based firms in the country was 143, thereby representing 50 percent growth. The adoption of blockchain technology which powers cryptocurrencies is found in areas such as healthcare and logistics, based on the realization that the technology can achieve many things not possible before now.
The IMDA also noted that decentralized finance (DeFi) entered the space, as Temasek in recent times became the first entity in Asia to partner with the Libra Association.