Bank of Tokyo-Mitsubishi UFJ and Hitachi launch blockchain technology project in Singapore

Rage Review : Hitachi Ltd. and Bank of Tokyo-Mitsubishi UFJ (BTMU) are testing a proof-of-concept mechanism based on blockchain technology and have developed a distributed ledger system for issuing, transferring and collecting electronic checks to digitize checks in the Republic of Singapore. Singapore also wants to use innovative technologies to reform financial services and create quality jobs in the financial sector, thus becoming a "smart country." The Monetary Authority of Singapore believes that the main driving force behind Singapore's becoming a smart contract financial center is the regulatory environment regulations, because such regulatory regulations are conducive to financial technology innovation and use.

Translation: Nicole

Hitachi Ltd. and Bank of Tokyo-Mitsubishi UFJ (BTMU) are testing a blockchain-based proof-of-concept to digitize cheques in the Republic of Singapore.

In a post published on the Hitachi and BTMU websites, the two companies announced that they have developed a distributed ledger system for issuing, transferring and collecting electronic checks. In a proof of concept, BTMU issued and settled checks, and some Hitachi group companies in Singapore could obtain electronic checks and store funds.

Singapore aims to become a smart financial center, using innovative technologies to reform financial services and create quality jobs in the financial sector, thus becoming a "smart nation." In November, Bitcoin Magazine reported that Singapore President Lee Hsien Loong suggested that the national bank and regulators explore the advantages and applications of blockchain technology, while emphasizing the importance of financial technologies (such as the Bitcoin network) in building regional and international participation of national banks and financial institutions. Lee Hsien Loong specifically mentioned the Bitcoin network's ability to handle real-time settlement and automatically verify transactions and payments.

At a forum in Singapore in April, Ravi Menon, managing director of the Monetary Authority of Singapore (MAS), suggested that blockchain and distributed ledgers are the most revolutionary technologies in fintech, at least until they are implemented on a large scale with artificial intelligence.

Ravi Menon

In June, MAS released a consultation paper titled "Guidelines for Fintech Regulatory Sandboxes", which focuses on guidelines for a regulatory sandbox framework to promote the development of fintech services. MAS believes that the main driving force behind Singapore's becoming a smart contract financial center is the regulatory environment regulations, as such regulations are conducive to fintech innovation and use.

The consultation report states:

“MAS believes that the regulatory sandbox scheme can create a safe and conducive environment for fintech experiments, even if the experiments fail, it will not have much impact. Sandboxes cannot avoid all risks, because innovation has the possibility of failure. In this regard, the open source sandbox reduces the impact of failed experiments on consumers and financial stability.”

In the sandbox framework, Hitachi and BTMU proof of concept testing can test actual use, and can use blockchain technology to issue and settle checks in a jointly developed distributed ledger. The company said that check digitization can realize the automation of checks by middlemen in financial institutions. Hitachi and BTMU hope that the same method can be applied to non-financial fields in the future, such as payment and supply chain finance, and they will work hard to apply blockchain technology to real life.

It is worth noting that this project is currently being implemented by two large multinational Japanese companies, who, in cooperation with the Singaporean government, have launched a clear statement of support for innovative fintech solutions based on distributed ledgers, while also hoping to become a major player in blockchain fintech. In addition, the project is also integrated into the regulatory framework developed by the Singaporean authorities, and the results of the project will be used again in BTMU's "MUFG Coin" project.

Hitachi is a multinational and highly diversified company in Japan, with businesses covering a variety of sectors, including energy, finance and government services. The company is listed on the Tokyo Stock Exchange and has 335,000 employees worldwide. BTMU, a member of Mitsubishi Tokyo UFJ Financial Group, is Japan's first bank with global influence.

In June, the Asahi Shimbun revealed that MFUG was conducting a digital currency experiment based on blockchain technology, "MUFG coin," which works similarly to prepaid electronic money. A bank spokesperson confirmed to Reuters that MUFG is conducting a demonstration experiment of the emerging electronic currency using blockchain technology within the company.