Today at the Hyperledger Global Forum, Sopnendu Mohanty of the Monetary Authority of Singapore (MAS) discussed an experimental project it’s working on to enable banks worldwide to use blockchain and central bank digital currencies (CBDC) for cross border payments. Key aims include making international payments faster, cheaper and safer.
Project Dunbar is a joint project between MAS and the Bank for International Settlements (BIS) Innovation Hub that is technically a multi central bank digital currency (M-CBDC) experiment. Mohanty was keen to emphasize that such a ledger would be provided purely as a settlement service, so commercial banks could use it to make international transfers, which sounds somewhat similar to SWIFT. The hope is this will make the settlement process easier.
“Central banks have come a long way to reconcile that there is a play for a DLT based shared ledger as a way to re-design your settlement system. Whether (that’s) for domestic settlement for securities and payments or for international settlement of securities and payment,” said Mohanty.
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