Canada and Singapore’s Central Banks Successfully Transfer Digital Currency

Asia Blockchain Review
June 23, 2019

Cross-border payments using blockchain-based solutions may soon become a reality, as central banks express growing interest in the technology. Recently, the Bank of Canada (BoC) and the Monetary Authority of Singapore (MAS) put the technology to trial by sending each other digital currency.

Blockchain Enables Cross-Currency, Cross-Border Transaction

The success of the central banks — the BoC and MAS — may lead to the introduction of new services, as blockchain eliminates the need for an intermediary in the settlement process.

For the trial, the banks connected their independently developed distributed ledger technology (DLT) networks for the transfer, according to Global Finance. Moreover, the trial was supported by Accenture and JPMorgan Chase and Co., companies that had assisted the blockchain technology project of both central banks.

The experiment was carried out with a technique known as hashed time-locked contracts. These contracts were used to connect the two networks and enable ‘payment vs. payment’ (PVP) settlement. This process ensures that a transfer in one currency will be deemed successful only if the final transfer in the other currency has also occurred.

Central Banks Endorse DLT-driven Business, Research

After the experiment, both central banks had released a report proposing alternative options for cross-border settlement as well as areas of research in blockchain platforms. The report called for central banks, financial institutions, and fintech companies to work together to drive businesses with DLT.

Additionally, a report published by the Bank for International Settlements disclosed that more than 40 central banks worldwide are interested in the concept of central bank digital currencies (CBDCs). However, real-world use may still be some time away in the future.


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Blockchain: Fine-tuning the Music Industry
Music might be in need of another tech disruption in the form of blockchain.

July 17, 2019

Graph Blockchain Secures Contract with South Korean Transport Ministry
The pilot project is for storing traffic data on a blockchain network as part of the Smart City nati...

July 13, 2019

Hong Kong, a Great Place for Blockchain Startups
It is quite evident that Hong Kong is quite rapidly developing to be a blockchain hub in the region ...

July 12, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us