The Monetary Authority of Singapore is readying to test its own digital currency. The regulator intends to use it in a trial of a blockchain-driven system for interbank payments. It will be a proof of concept project and will involve the stock exchange and 8 banks. The idea is to simplify the payments process and reduce transaction costs. According to MAS managing director Ravi Menon, it may include cross-border transactions with the participation of another central bank in the future. Menon said the project marks the first step in MAS’ exploration of ways to harness the potential of central bank-issued digital currency. The plan involves an internally created digital currency. Earlier, Bank of Canada had undertaken a similar project, under which it is running experiments on interbank payment systems using blockchain-type technology. DBS Group, HSBC Holdings, Bank of America Corp, JPMorgan Chase, Credit Suisse Group and Bank of Tokyo-Mitsubishi UFJ are the banks involved in the MAS program.
