MAS opts for blockchain technology to make international payments
Date: 2018-03-17   Author: Paroma Bhattacharya  Category: #technology

MAS opts for blockchain technology to make international payments

The Monetary Authority of Singapore (MAS) has partnered with Bank of Canada and is conducting tests to develop a cross border solution. Incidentally, this solution is based on the use of crypto tokens issued by the central banks of two different countries.

The collaboration plausibly comes on the heels of a recent financial industry event where Ravi Menon, Managing Director of Monetary Authority of Singapore, spoke about the potential of blockchain in international payments. In the speech, he reportedly declared his belief that the use of crypto currency can find a strong usage in facilitating cross-border settlements. He went on to add that the Singapore’s project Ubin has taken up it as a challenge to solve the use of blockchain technology and to enable its usage as a means of payment that entities across different jurisdictions can use.

The present remark is a double down on Menon’s earlier remark where he had declared that due to lack of payment, storage and accounting features, crypto tokens are not entitled to be termed as currencies. However, sources say that he seems to have left an open scope for crypto tokens by adding that just because they are not a currency now does not mean they cannot be considered a currency in the future.

Apparently, concerns had also been raised about the growing risks that are emerging in relation to the fiscal technology. The MD of MAS, in this regard, said that MAS had been watching out for areas such as money laundering, fundraising and effects of crypto tokens on overall financial stability.

The MD’s speech also reiterated the initial coin offering guidance issued for investor protection and stressed on the fact that investor protection is of immediate concern in the ongoing crypto mania. Crypto tokens may represent ownership or debt owed by the issuer, but under the Securities and Futures Act they may come to be regarded as securities. In the light of this scenario, say experts, the MAS-bank of Canada partnership is likely to recapitulate the significance of the blockchain.



About Author


Paroma Bhattacharya

Paroma Bhattacharya

Paroma currently works as a content developer for AlgosOnline. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched content in diverse fields. Apart from...

Read More

More from Paroma


Post Recommendents

Cnc Cutting Machines Market Size 2019 - Application, Trends, Growth, Opportunities and Worldwide Forecast to 2024
Author: Partha Ray

Global Cnc Cutting Machines Market report 2024 focuses on the major Types and Applications for the key players. Global Cnc Cutting Machines market research report also provides analysis of the market share, segmentation, revenue forecasts and geog...


Foam Concrete Market Outlook 2024: Top Companies, Trends, Growth Factors Details by Regions, Types and Applications
Author: Partha Ray

The Foam Concrete Market report offers detailed competitive landscape of the global market. It includes company, market share analysis, product portfolio of the major industry participants. The report provides detailed segmentation of the Foam Con...


Global Component Testers Market Growth, Size, Analysis, Outlook by 2019 - Trends, Opportunities and Forecast to 2024
Author: Partha Ray

Global Component Testers Market Report provides complete industry analysis, market outlook, size, growth, opportunities and forecast 2024. This report will assist in analyzing the current and future business trends, sales and revenue forecast. It ...