Blockchain R&D Wing Of Singapore Central Bank – Latest Update
Singapore’s monetary authority has rolled forward a three step plan for establishing a connection with central banks all around the globe on the wings of distributed ledger technology(Blockchain Technology). Named as Project Ubin, this platform wishes to implement real time operations for overlooking cross border transactions of global central banks through tactical use of Blockchain technology.
In stark contrast to the current system which allows real time settlement of only institutionally crucial or high value transactions, the brand new Project Ubin has been designed specifically to foster instant security settlement and cross border payment.
Rendering privacy protection to transactions and tokenizing global currencies by putting to use Intel’s software guard extensions and zero-knowledge proofs will increase privacy and speed of international transactions by self-execution of smart contracts.
This six week project completed its first phase in December 23, 2016. The formal announcement of the same was made on March 9, 2017 and its 44 page white paper detailing was published thereafter bringing out all the partnership results. The white paper co-authored by Deloitte narrated the journey of Project Ubin towards tokenizing of Singaporean dollar (SGD) by making use of distributed ledger technology(Blockchain Technology). The paper also shared insights on Canadian Project Jasper and the lessons learnt from the same for building up an Ethereum based prototype. This new project will link the urgent and high value transactions of Monetary Authority of Singapore called MEPS+ with RTGS facility to bring forward efficient money transfer in between participants using online wallets.
Taking The Next Step
The second phase of Project Ubin has already received a green signal with its initial activities. The project has been designed for bringing forward more prototype based research and transactional efficiency in comparison to the current system where the transactions get periodically netted and queued using classical algorithms. Two full time interns and eight part time staffers are working round the clock to bridge the gap in between private settlement of transactions in real time and periodic netting. The project is also aiming to integrate the platform with different central securities depositories overseen by Singapore’s Monetary Authority. A success of the second phase will bring forward extension of cryptocurrencies issued by digital banks to other central banks.