The Monetary Authority of Singapore (MAS) has announced a new plan for cryptocurrency in Singapore. Its name is Project Ubin – distributed ledger technology aiming to connect central banks worldwide. How will the plan work?
25 July, AtozForex – Monetary Authority of Singapore is the latest one joining distributed ledger technology, following Deutsche Bank, BNY Mellon and UBS adoption in August 2016. Soon, a new technology will significantly change the way transactions are processed.
Cryptocurrency in Singapore
At the present moment, it is only possible to make either institutionally important or high-valued transactions in real time. That’s the reason behind the creation of the Project Ubin. Its purpose is to make the process of execution nearly instant, both for payments and securities. The project has been established in cooperation with JPMorgan, Merrill Lynch, Bank of America, Credit Suisse, banking consortium R3 and Mitsubishi UFJ Financial Group.
Into more details of Project Urbin
The system aims at the execution of smart contracts through tokenization of international currencies, at the same time providing client privacy with zero-knowledge proofs and Intel’s software guard extension (SGX).
Moreover, the project implementation is comprising three stages.
- At first, with the purpose of exploring the abilities of Project Ubin, the team of specialists will concentrate on zero-knowledge proofs, Intel’s SGX, the application of an MIT Enigma Project’s secure multi-party computation, and Microsoft cryplets.
- The second step is to identify the platform best fitting into the bank system.
- As a final stage, cryptocurrencies by central banks will expand to other central banks.
After the formal agreement on December 23, 2016, phase one of Project Ubin took place March 9, 2017, by Deloitte. It was created on the basis of Project Jasper in Canada and R3. It has collectively put an effort to build Ethereum.
Also, the document spoke about the way how efficiency between digital wallets can be enhanced by connecting real-time gross settlement system (RTGS) to the system serving MEPS+ and MAS’ high-valued transactions. The second stage taking place now. It is the one where the research digs deeper into the process – the aim is to improve the transfers. In fact, the current system will change in accordance with the algorithms.
In the future, the plans include settling up the question about the conversion of Singapore dollar into digital currency. One more issue is the effect which the project produces on monetary policy. To help dealing with some of the potential problems, a consultation paper is going to be published.
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