Project Ubin: MAS Completes Final Phase Central Bank Digital Currency Project

Project Ubin: MAS Completes Final Phase Central Bank Digital Currency Project

by July 13, 2020

The Monetary Authority of Singapore (MAS) and Temasek today jointly released a report to mark the successful conclusion of the fifth and final phase of Project Ubin.

It provides technical insights into the blockchain-based multi-currency payments network prototype that was built and describes how the network could benefit the financial industry and blockchain ecosystem.

The key findings of the report mentioned that an international settlement network, modelled after this payments network prototype, could enable faster and cheaper transactions compared to conventional cross-border payments channels.

They said last phase of the project validated the use of smart contracts on the payments network prototype in use cases such as Delivery-versus-Payment (DvP) settlement with assets on private exchanges, conditional payments and escrow for trade, as well as payment commitments for trade finance.

The commercial applications include cross-border payments in multiple currencies, foreign currency exchange, settlement of foreign currency-denominated securities, as well as integration with other blockchain-based platforms to enable end-to-end digitalisation across many industries and use cases.

The prototype, developed in collaboration with J.P. Morgan and Temasek, can serve as a test network to facilitate collaboration with other central banks and the financial industry for developing next generation cross-border payments infrastructure. Technical specifications for the functionalities and connectivity interfaces of the prototype network have been made publicly available to spur further industry development.

Sopnendu Mohanty

Sopnendu Mohanty

Mr Sopnendu Mohanty, Chief Fintech Officer, MAS, said,

“As with all innovation adoption, there is a time for experimentation, and a time for commercialisation. Project Ubin has worked with the financial industry and blockchain community on a journey of experimentation, prototyping and learning.

This has built a strong foundation of knowledge, expertise and experience, and paved a path towards commercial adoption. Following the successful experimentation over five phases, we look forward to greater adoption and live deployment of blockchain technology.”

Chia Song Hwee

Chia Song Hwee

Mr Chia Song Hwee, Deputy Chief Executive Officer, Temasek, said,

“Blockchain technology has great potential in transforming businesses and opening up new business opportunities. Phase 5 of Project Ubin has demonstrated the commercial applicability, viability and benefits of blockchain technology across industries, beyond capital markets and trade finance.

This validates Temasek’s efforts in exploring and building blockchain solutions focusing on digital identity, digital currencies and financial asset tokenisation. We look forward to supporting commercialisation efforts emanating from Project Ubin and other application areas, with a view to drive greater adoption of blockchain technology.”

JP Morgan is said to have been an active contributor, its Managing Director and Head of Blockchain, Mr. Umar Farooq said that they have leveraged their learning in building Quorum, IIN, and JPM Coin to contribute to the project.