The Bank of Canada and the Monetary Authority of Singapore reported on the successful completion of the first-of-its-kind cross-border settlement test between two central banks using the blockchain and digital currencies. Singaporeans noted the great potential of blockchain to increase efficiency and reduce the risk of international payments.
Testing involved their own blockchain projects of each of the banks - the Canadian Jasper and the Singapore Ubin. The platforms are based on the Corda networks from R3 and Quorum from JPMorgan respectively. Two networks were able to connect using the technology of hashed synchronized contracts. This made it possible to carry out the calculation in the format “payment against payment” without the involvement of intermediaries.
The development of Jasper and Ubin projects has been carried out since 2016 in order to increase the efficiency of interbank transactions.
“The success of the Jasper-Ubin project is an important achievement for converting cross-border transactions with support for different currencies,” said an engineer at Accenture.
Project participants say: distributed registry technology can play an important role in the formation of a unified system of interbank settlements. However, all their current developments are still at an experimental level. Canadians and Singaporeans are calling on other banks to join the initiative to make cross-border payments cheaper, faster and safer.