Blockchain continues to expand and offer effective solutions to any company that decides to adopt it. In this case, the Singapore Central Bank, the Monetary Authority of Singapore (MAS) has partnered with the JP Morgan entity. This collaboration will lead to the creation of a cross-border blockchain payment system.
JP Morgan is the oldest and most recognized financial services company in the world. Created in 1799 from the union of Chase Manhattan Corporation and the J.P. Morgan & Co. They have more than 2.4 billion dollars invested in financial assets.
The new system prototype will allow payments in different types of currencies in the same network. This project is part of the fifth phase of the Ubin Project, which was initiated at the end of 2016 by the MAS in order to seek payments and securities settlements based on the blockchain.
In this project, the MAS has partnered with more than 40 entities to experience its advantages. Among these is Temasek, a government investment firm through which it shows its support for the blockchain project.
John Hunter, global head of compensation and IIN at JPMorgan stated:
“JP Morgan is excited to be an infrastructure partner of MAS and Temasek for Phase 5 of the Ubin Project. By taking advantage of our learning in the construction of the Interbank Information Network (IIN) and the JPM Coin. JP Morgan is well positioned to support the development of a blockchain-based payment network and operate at scale. ”
Presumably, at the beginning of 2020 Accenture will publish the technical specifications of the project. This will describe the cases where there would be a benefit in case of using the blockchain-based network for payments and securities. The technical specifications have been developed and will be published in Apache version 2.0.
The MAS seeks to partner with other entities to expand its cross-border network. Therefore, other central banks are likely to follow suit in the desire to expand towards the blockchain.