Crypto Payments Pilot Between Canada And Singapore Successfully Conducted

Crypto payments pilot test between the Bank of Canada and the Monetary Authority of Singapore was successfully conducted of the central bank-backed crypto assets. The cross-border payments are great news that we are reading more about in the latest cryptocurrency news.

The statement of the MAS released earlier today explained the potential of ‘’central bank digital currencies’’ in boosting the efficiency of international transactions but also reducing risks while processing the crypto payments. According to the official statement:

 “The Bank of Canada and the Monetary Authority of Singapore (MAS) have conducted a successful experiment on cross-border and cross-currency payments using central bank digital currencies. This is the first such trial between two central banks, and has great potential to increase efficiencies and reduce risks for cross-border payments.’’

The pilot test for the crypto payments relied on the Distributed Ledger Technology (DLT) which is basically a private blockchain network that is largely centralized. The centralized blockchain network is a protocol controlled by a group of node operators that are able to process data. The benefit of the DLT is the large transaction capacity and scalability.

However, it remains unclear whether the DLT-based network can be described as blockchain networks since they lack a decentralized structure. The successful crypto payments pilot by the two major central banks shows the rise in interest in blockchain technology and cryptocurrencies in order to process payments on a global scale.

The collaboration between the banks comes after many large institutions as reported in the altcoin news such as JPMorgan decided to release their own digital assets. The head of JPMorgan Asia Pacific Naveen Mallela explained the advantages of crypto payments conducted on the blockchain:

‘’We are encouraged that Quorum has contributed to further progress in enabling cross-border payments. We look forward to continued collaboration with MAS and the financial community towards exploring a future where transactions can be executed at scale, safely, and more efficiently. J.P. Morgan is at the forefront of blockchain innovation and we will continue to invest in relevant technologies to improve the payment experience for our clients.’’

The MAS is expected to work with other banks as well to develop a central bank blockchain project in order to better scale the crypto payments for banks and retail clients of the banks.