Singapore’s Monetary Authority Sees Potential for Blockchain-based Cross-border Transfers

Asia Blockchain Review
May 24, 2019

A representative of the Monetary Authority of Singapore (MAS) revealed at the recent MIT Technology Review’s Business of Blockchain 2019 event on May 2nd that the agency sees blockchain as a useful platform for cross-border transactions, but not for retail bank digital currencies.

According to Cointelegraph, the statement was made by Sopnendu Mohanty, Chief Fintech Officer of the MAS. Mohanty disclosed that in 2016, government agencies did not have a thorough understanding of the decentralized ledger technology. Therefore, Singapore’s central bank had chosen to put the technology to trial to learn about what it can provide to the banking and financial industry.

The Chief Fintech Officer said that over the past few years, the MAS has become more knowledgeable about blockchain technology and its use cases. Examples of blockchain solutions that the MAS has focused on include settling payments against securities, carrying out cross-border transfers, and deploying blockchain to settle payments in the banking system.

Mohanty said, “The next wave of central bank blockchain projects can make further progress by bringing technology exploration together with policy questions about the future of cross-border payments.”

However, Mohanty said the central bank does not see potential regarding the implementation of blockchain for retail bank digital currencies.

Earlier in January 2019, the MAS issued a statement warning the general public about problems that could arise when dealing in cryptocurrencies or digital tokens. The agency also stated that investments in these forms of digital assets often come with high risk.


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