Bitcoin Interbank Project A Success For Singapore Bank

A Bank of Singapore branch in Singapore, on Monday, August 8, 2011. Photographer: Munshi Ahmed/Bloomberg. The bank is a subsidiary of Singapore's OCBC Bank, which was rated by Bloomberg as one of the world's strongest banks.

The Singapore bank has officially concluded its own blockchain experiment designed to test the capabilities of the digital technology in a fintech setting. With help from the R3 consortium, the monetary authority of Singapore, a solution for interbank payments was developed making full use of blockchain technology. The bank further announced that the blockchain project aimed to deliver a digital representation of the Singaporean dollar on an international scale, which was achieved in the first trial run.

MAS have plans for two spin-off projects that will leverage the lessons of the inter-bank payments project. The first project, driven by the Singapore Exchange (SGX), focuses on making the fixed income securities trading and settlement cycle more efficient through DLT. The second project focuses on new methods to conduct cross border payments using central bank digital currency.

Projects revolving around blockchain technologies have also been trailed in a handful of other countries to much success. Especially in china who recently announced the success of its very own blockchain application, Bitcoin’s eventual integration into traditional banking institutions seems like natural progression.

To conclude the success of the pilot project is predicted to set the precedent for a progressive transition to blockchain technologies for international transactions. As explained, the instant transactions allowed by the blockchain technology has proven to be its most important feature in terms of interbank solutions, as assets can be transferred at any time of the day in a matter of seconds. The banks fintech chief, Sopnendu Mohanty, has also announced how a trail application of the blockchain technology will soon commence to evaluate the Bitcoin potential in securities exchanges and international transactions.

Quick update on the Bitcoin ETF – sadly the ETF has been rejected as of today, more coming up soon with regards to the full picture!

Written By

Hi I'm Aleppo Allesadero a experienced bitcoin user and educator. Having worked for over a year in the bitcoin journalism ive seen bitcoin grow from strength to strength asserting its power against fiat currency. Hopefully you too can learn about this exciting new prospect which may help transform the way we see finance and economy on a daily basis.