Two central banks sent each other cryptocurrencies using blockchain tech

04 May, 2019 | Updated: 04 May, 2019
by Joeri Cant
Adoption
Two central banks sent each other cryptocurrencies using blockchain tech

The Bank of Canada and the Monetary Authority of Singapore, are the first two central banks in the world, which have sent each other cryptocurrencies using blockchain technology.

According to Bloomberg, the Bank of Canada and the Monetary Authority of Singapore have concluded a successful trial of central bank-backed crypto assets to clear cross-border and cross-currency payments.

'The Bank of Canada and the Monetary Authority of Singapore (MAS) have conducted a successful experiment on cross-border and cross-currency payments using central bank digital currencies. This is the first such trial between two central banks, and has great potential to increase efficiencies and reduce risks for cross-border payments', the Singapore central bank said.

The Bloomberg report shows that The Bank of Canada aligned their domestic payment network, Project Jasper, with Singapore’s distributed ledger payments network, Project Ubin, to test cross-border blockchain payments. The banks’ tests were conducted in partnership with Accenture and JPMorgan Chase & Co.

The Chief FinTech Officer at the Monetary Authority of Singapore said that 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.

'Together, these projects have addressed many technical questions and brought the technology to a higher level of maturity', he said.

The Asia Pacific Head of Digital for JPMorgan, Naveen Mallela, said that the bank will collaborate with the MAS in the coming years to execute transactions at scale.

'We look forward to continued collaboration with MAS and the financial community towards exploring a future where transactions can be executed at scale, safely, and more efficiently. J.P. Morgan is at the forefront of blockchain innovation and we will continue to invest in relevant technologies to improve the payment experience for our clients.'

The Bank of Canada’s senior special director of financial technology, Scott Hendry, expressed similar sentiments, by saying that they will continue to collaborate with the Monetary Authority of Singapore to establish a viable blockchain solution for cross-border payments.

'Only through continued collaboration and fundamental research will it be possible for this technology to mature and for policymakers to fully understand its potential', Hendry concluded.

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