In a significant development related to blockchain adoption, a very first cross-border, digital transaction has taken place between the Bank of Canada and the Monetary Authority of Singapore (MAS). What makes this transaction important is the fact that this is the first blockchain-based transaction and the project was piloted in order to find how advantageous the adoption of blockchain could turn out to be for these central banks. Globally, adoption of the blockchain especially for the cross-border transactions is becoming increasingly popular and now it seems, both of these countries have also decided to take a plunge into open-distributed ledger technology.
After successfully completing the transaction, a joint statement was released on the behalf of both banks, revealing the information that they have been collaborating on this project for quite some time. The results of this collaboration are encouraging as they have found a significant saving in the cost and time in the cross-border transaction owing to use of blockchain technology. Blockchain has also made the process of payment transfer safer than before.
For carrying out this pilot project, banks have collaborated with JP Morgan Chase & Co. and Accenture for the necessary technical support. During the execution, “Project Ubin” (payment network of MAS) was joined with “Project Jasper” (payment network of Canadian Central Bank) and the transaction was conducted successfully. Both of these projects have now been able to address the various challenges and issues involved in the cross border payments and in their combined present form have achieved a desired level of maturity for executing cross-border transactions.
Both of the central banks has gone one step ahead and jointly published an array of cross-border settlement frameworks that will act as input for the future evolutions necessary to tackle future payment challenges. Both organizations agree on further enhancing their cooperation in order to derive maximum benefit from the blockchain in addition to helping each other to understand the life-cycle of this technology. As the blockchain goes into the next phase of evolution, it will be important for the organizations to enhance their understanding and know-how about this open-ledger framework.
Giving the reaction on this cross-border payment project, the top echelon from Accenture said that the blockchain technology is evolving and maturing with each passing day and it is very important to keep track of developments happening in the digital space. Regarding this particular transaction, David Treat who is heading global blockchain initiatives at Accenture said that this pilot testing of the project is indeed a big milestone in the adoption of blockchain especially with regard to its use in the domain of cross-border transactions.