During the Money 20/20 Asia conference on March 15, Ravi Menon, the head manager of the Monetary Authority of Singapore (MAS) said it is planning to use the blockchain technology “to facilitate cross-border payments in traditional currencies.”
The managing director of Singapore Central Bank said the bank has been studying the evolving market of cryptocurrency for a long time and that it is ready to implement an international Blockchain payment application called “Project Ubin”.
This initiative aims to use the Blockchain technology to facilitate international payment with a more efficient system than the current one.
“This is the challenge that Singapore’s Project Ubin has set itself to solve:
- to use blockchain technology to enable entities across jurisdictions to make payments to one another:
- without intermediaries;
- with greater speed and efficiency; and at lower risk and cost.”
The MAS decided it was not going to regulate the cryptocurrency market but will look closely at certain aspects.
” MAS has to-date chosen not to regulate crypto tokens directly. But we are:
- focusing on the activities associated with crypto tokens,
- evaluating the different kinds of risks these activities pose, and
- considering the appropriate regulatory responses,
- all the while, seeking to ensure that we do not stifle innovation.”
Singapore Central Bank’s managing director also told that the MAS and the Bank of Canada had officially teamed up “to test and develop a cross-border solution using crypto tokens issued by the two central banks.”
The evolving market of cryptocurrency brings the banks to compete with cryptocurrency technologies, which forces some banks to implement the Blockchain technology. Recently, Bithumb and Bitpay announced they had partnered to be competitive in the international remittance market.