Singapore to Roll Out Blockchain-Based Payments Platform to the Public

  • August 4, 2020
  • Bitcoin

The Monetary Authority of Singapore has completed plans to launch a blockchain-based multi-currency platform.

Singapore is approaching a realizable future where electronic payments will be the new standard. On June 13, the government revealed that MAS, Monetary Authority of Singapore, had finalized its plans for the launch of “Project-Ubin,” which is a blockchain multiple currency platform for payments.

MAS, Singapore’s Financial Regulator, is in the process of developing a payments platform intending to digitize the Singapore Dollar, the country’s national currency, for the last three years. The government inches closer to its goal of crating the digitized version with the launch fo the payments platform.

When the Project Ubin was launched by MAS, it collaborated earlir with R3, blockchain consortium, to merge the Ethereum blockchain in the project’s payment system of interbank payment. Because of this, cash-swapping of cryptocurrencies will become seamless for all the financial institutions in Singapore. 

The first phase of this project focussed on currency transfers from a privy Ethereum network through the MEPS+ system. MAS stated that after the success of this phase, the possibility of money-transfer through multiple banks would become a reality.

The second phase concentrated on the addition and improvement of cross border features and channels for payment-delivery. This would help improve the security of the program and the protection of those digital assets that are being remitted between two endpoints.

After completing the development of the payment’s network in November 2019, the testing began to observe the viability of the system to operate seamlessly with commercialized blockchain applications. For this, MAS partnered with the American investment bank, JP Morgan, and Temasek, an investment company based in Singapore. Together, they will explore the blockchain network’s abilities to clear and settle securities and payments through the digital Singapore Dollar Therefore, this payment network will permit the integration of different blockchain networks.

In a recent announcement, Reuters said that it would improve several transitory aspects, such as security settlemetns dominated by currency, cross-border transfers in many currencies, and other foreign exchanges.

The digitalized Singapore Dollar will also push the development of Singapore’s Central Bank Digital Currency, which focuses on many countries from last year.

With Singapore’s significant shift approach to blockchain, the Infocomm Media Development Authority, at the Unitize Blockchain Conference last week, revealed the country’s digital currency landscape map, highlighting the significant growth of the blockchain space in the last year.

The map showed that Decentralized Finance (DeFi) has been a significant addition of 2020. DeFi is the movement to leverage decentralized network for transforming old financial products into transparent protocols that can run without intermediaries. It is gaining major traction worldwide. With the Singapore government actively adopting blockchain maps to embrace financial transactions, DeFi can see an appreciated growth in Singapore.

The map also summarized that there are 234 companies in 26 categories operating within Singapore’s blockchain space. This number on the map shows a growth of 91 countries as compared to last year, which is a 50% growth.

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