The Monetary Authority of Singapore (MAS), the US bank JPMorgan and Temasek, a government-owned investment company, have developed a blockchain system for cross-border payments.
MAS, which has shared the news, has said this new system allows payments in different currencies through the same network.
This prototype payment system is part of the 5th phase of the Ubin project, in which the government began work back in 2016 with the aim of studying possible applications of blockchain technology in the field of clearing and settlement of payments and securities.
Sopnendu Mohanty, director of fintech technology at MAS, said:
"There is growing evidence now that blockchain-based payments networks are able to enhance cost efficiencies and create new opportunities for businesses."
Early next year well-known consulting firm Accenture will publish a report with the results of the prototype, which will also indicate additional features that the network could provide in the future.
The MAS hopes that other central banks will follow the initiative and work on similar systems.
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