The monetary Authority of Singapore can presently test how it may issue cryptocurrency employing an international bank payment system based on blockchain technology. Blockchain association R3CEV, in addition as eight banks and an anonymous exchange, supports the planned proof-of-concept. The Development Bank of Singapore, HSBC, Bank of America, JPMorgan, Credit Suisse and Bank of Tokyo-Mitsubishi are all will be taking part.
The monetary Authority of Singapore director Ravi Menon told that the test might return to incorporate different central banks. Further, he added that the bank’s want to get rid of value and friction from ancient bank transactions because the motivation for the trouble.
Ravi Menon said:
“Today, banks ought to go through correspondent banks to intermediate these payments. It takes time and adds to value. This project marks the primary step within the monetary Authority of Singapore’s exploration of the way to harness the potential of central bank-issued cryptocurrency.”
The trial would realize banks depositing money as collateral with the monetary Authority of Singapore, which might then issue a cryptocurrency to participants. The cryptocurrency may then be changed among participants within the system and later ransomed for money.
The forthcoming trial bears similarities to an antecedently proclaimed effort from UBS, Deutsche Bank, Banco Santander and startup Clearmatics in August. Known as Utility Settlement Coin, the project pictured how a financial institution might issue cryptocurrency that might then be ransomed for money control by a central bank.