Singapore experimenting with Blockchain technology

Monetary Authority of Singapore (MAS) announced that it is partnering R3, a Blockchain technology company, and a consortium of financial institutions on a proof-of-concept project to conduct inter-bank payments using Blockchain technology, said MAS in a press release on Wednesday.

MAS said this project could potentially avail a payment system for participants to transact in different global markets round-the-clock that are today limited by time zone differences and office hours. The project will develop a pilot system in which Blockchain infrastructure is used to issue and transfer funds among participants.

Such a system will also be more resilient against stoppages by decentralizing and distributing the software that records and validates payments. Participants can depend on the immutable record of transactions at the heart of the Blockchain to reduce the cost of long term record keeping.

The central bank said Blockchain technology has the potential to make financial transactions and processes more transparent, resilient and at lower cost. The outcomes from the project will provide guidance on future projects such as cross border payments, automation of securities issuance, trading and settlement using Blockchain technology.

(APD)