During the Money20/20 Asia conference, Ravi Menon, the managing director of Monetary Authority of Singapore (MAS), said that the city-state’s plans of Blockchain would effectively solve the challenge of efficiency in the industry. They have called this program as ‘Project Ubin.’ This is Singapore’s commitment to utilizing blockchain for international payments.
He pointed out the importance of crypto tokens in facilitating cross-border payments in traditional currencies. The challenges that Project Ubin is seeking to solve include: to use blockchain technology to enable entities across jurisdictions to make payments to one another, without intermediaries; with higher speed and efficiency; and at lower risk and cost.
The Singaporean government has been working closely together with MAS to create an enabling environment for cryptocurrency business. They both have a realization that blockchain is potentially beneficial in enabling this environment.
Back in February, MAS chief Fintech officer was categorical that developmental aspects of Project Ubin were a classic example of how fabulous blockchain technology was. He said this in his address to the mainstream media, although he added that it would take like two years before the real impact could be felt.
Menon also confirmed the partnership between MAS and the bank of Canada in testing and developing cross-border solutions that will utilize the crypto tokens that are issued by the two central banks.
Singapore’s neighbors are also interested in the remittances that use blockchain. Japan and South Korea have expressed their intentions to put in place similar schemes, banks competing with crypto industry projects such as that announced by major South Korean exchange Bithumb and US payment gateway BitPay this week.