The Monetary Authority of Singapore (MAS) is set to become the latest central bank to test its own digital currency, which will be used for interbank payments in a trial of a blockchain system. Ravi Menon, managing director of the Monetary Authority of Singapore, said in a speech on Wednesday that the proof-of-concept project, which also involves the Singapore Stock Exchange and eight banks , aims to simplify payment processes and reduce transaction costs. He said another central bank may be involved in the future to jointly conduct cross-border payments. Menon said:
The project is also the latest sign that a long-running discussion in the banking industry — using blockchain technology to speed up and simplify interbank transactions — is gaining traction after years of debate and warnings about potential security vulnerabilities. The MAS plan involves an internally created digital currency, similar to an approach taken by the Bank of Canada, which in June said it was testing an interbank payments system using blockchain technology. According to Menon, MAS's trials include:
Central banks in China and the U.K. have also been looking into issuing their own digital currencies, independent of bitcoin, which is often associated with blockchain but has been tarnished by fraud and money laundering concerns. UBS, Deutsche Bank and Spain’s Santander have developed a “settlement coin” with other firms and a company called Clearmatics — a currency that can be used on a blockchain and exchanged between banks. Singapore’s DBS Bank, HSBC, Bank of America and JPMorgan Chase & Co., Credit Suisse Group AG and Bank of Tokyo-Mitsubishi UFJ are among the participants in the MAS project, according to a slide presentation Menon gave during his presentation. R3, a blockchain consortium that is developing blockchain applications for financial services, including money transfers, record keeping and other back-office functions, also provided support for the MAS project. MAS said it had partnered with R3 to create its Singapore center last week to jointly develop blockchain technology. Financial Technology FestivalMenon said Singapore will also create a national know-your-customer (KYC) platform that will help banks avoid delays in collecting customer data and reduce compliance costs. The 'foundational building block' of the system will be the Singapore government's MyInfo service, which collects personal data of Singapore residents, he said at an event at the Singapore Fintech Festival. The week-long Singapore FinTech Festival, organised by MAS, aims to expand Singapore's status as a financial technology hub as the country competes with London, Hong Kong and New York to attract financial firms and startups. Menon said the fintech festival has attracted more than 11,000 attendees from more than 50 countries. Speakers have included Blythe Masters, CEO of Digital Asset Holdings, a strong blockchain backer, and Peter Sands, former CEO of Standard Chartered Bank. |
>>: China's central bank is hiring blockchain experts to launch digital currency
Some women are born with a destiny that gets bett...
What does a girl with almond-shaped eyes look lik...
What is the most important thing in our life? It i...
Is it good for a woman to have small eyes? Analys...
Australia's traditional wealth management ind...
Look at what you are good at Everyone has their o...
We all have moles, and most of them grow on the f...
In the normal process of interpersonal communicat...
For a person, we can often start from some aspect...
What do two marriage lines indicate? The marriage...
Is it okay to not have a wealth line on your hand...
Emotional difficulties are something that many pe...
Written in front: With the arrival of a new cycle...
Men with straight noses have good looks A man'...
1. A new perspective on the physiognomy of a croo...