The Monetary Authority of Singapore (MAS) and the Bank of Canada (BoC) have jointly announced that they have successfully completed a cross-border payment test to send digital currencies on a blockchain platform without a third party, according to Cointelegraph.
For the trial, the central banks developed decentralized ledger technology (DLT) networks — MAS’s Project Ubin platform and BoC’s Project Jasper — which were connected to each other for the transfer.
The statement revealed that JPMorgan and Accenture also assisted the central banks in transferring the currencies using blockchain technology.
MAS Chief Fintech Officer Sopnendu Mohanty said in the press release,“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. It is challenging work, and we welcome other central banks to join us in this global collaboration, to bring benefit to consumers, businesses and the broader financial industry.”
The joint press release from the central banks revealed that the experiment successfully carried out all actions ensuring the “end to end consistency of a transaction.”
Moreover, the statement reads, “In the correspondent banking method of payment, the sender and receiver trust the correspondent bank. In this DLT-based system using HTLC, trust will still be required, albeit in the technical system rather than in a third party.”
Central banks worldwide have eyed blockchain solutions as a way to bring down costs associated with currency transfers while upgrading services for customers.
Singapore’s central bank previously announced that Project Ubin will begin to deliver concrete results in 2020.
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