Apart from enabling cross-border transactions, blockchain technology has proven to be a successful method of processing cross-currency payments.
The Bank of Canada (BoC) and Monetary Authority of Singapore (MAS) recently carried out an experiment to process transactions on a blockchain-enabled platform, according to Bloomberg. The test was successful in sending money cross-border using different currencies, paving the way for more blockchain applications in the banking and finance sector in the near future.
In a statement, the state financial institutions revealed that they have been jointly studying blockchain applications as well as exploring the uses of digital currencies, with the objective of lowering the costs and turnaround times of cross-border transactions while enhancing security.
The BoC said that in the trial, its experimental domestic payment network — Project Jasper — was connected with MAS’s Project Ubin network. Also joining in the project to carry out the cross-border payment test were Accenture and JPMorgan Chase & Co.
Sopnendu Mohanty, Chief FinTech Officer at MAS, revealed, “Project Jasper and Project Ubin have built on previous innovations in the payments area to demonstrate that cross-border payment and settlement can be made simpler and more efficient.”
Mohanty added that the projects have addressed many technical questions and brought the technology to a “higher level of maturity.”
The central banks have also jointly published a report detailing suggestions in establishing cross-border settlement systems, as well as the possible limitations and challenges of carrying out the new technology.
David Treat, Global Blockchain Lead at Accenture, said the experiment was “a big milestone for the modernization of cross-border, cross-currency transactions.”
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