Singapore’s Central Bank Wants Blockchain for 24/7 Inter-Bank Payments

The Monetary Authority of Singapore (MAS) has provided more details today about its recently announced collaboration with the R3 blockchain consortium. As Singapore’s central bank and financial regulatory authority, the MAS launched a proof-of-concept project to conduct inter-bank Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term using Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term technology.

The MAS explains this project could potentially create a payment system to transact in different global markets round-the-clock that are today limited by time zone differences and office hours. Such a system will also be more resilient against stoppages by decentralizing and distributing the validation software as well as reducing the cost of long term record keeping.

The outcomes from the project will provide guidance on future projects such as cross border payments, automation of securities issuance, trading and settlement. MAS also says it will the industry to develop simpler to use and more efficient alternatives to today’s systems.

Sopnendu Mohanty, Chief FinTech Officer, MAS, said: “The simplification of processes that comes from having a single and coherent, distributed record of information makes Blockchain technology an attractive solution for the financial sector. MAS is engaging with the industry and working closely with our partners to explore innovative payment solutions.”

Tim Grant, CEO of R3’s Lab and Research Center, and member of the MAS International Technology Advisory Panel, comments: “We are delighted to build on our relationship with MAS and bring together a large group of financial institutions from both Singapore as well as global players from our membership. Payments and the representation of fiat currency on Blockchains is a potentially significant use case for distributed ledger technology and we firmly believe that partnership between regulators, central banks and the financial services sector will accelerate solutions to maturity.”