Today the Monetary Authority of Singapore (MAS) announced it has conducted a successful experiment for cross border and cross-currency payments using Central Bank Digital Currencies. It’s part of the latest iteration of its Central Bank Digital Currency (CBDC) experiments,
Project Ubin. The Bank of Canada has been working with Accenture on
Project Jasper on R3’s Corda, and MAS was assisted by JP Morgan using Quorum for the Jasper-Ubin project.
The purpose of the test is to see whether distributed ledger technology (DLT) and CBDCs can make cross border payments cheaper, faster and safer.
The experiment involved connecting the two separate domestic payment networks running on different technologies. Hashed Time-Locked Contracts (HTLC) were used to enable Payment versus Payment (PvP) without a trusted third party as an intermediary. Typically the likes of
CLS are used as settlement services to reduce counterparty risk because conventionally settlement is not instant.
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