Singapore Central Bank Honcho Acknowledges Blockchain Benefits in Cross-Border Payments

The benefits of blockchain technology often become too many to count and one of the major ones seems to be that this technology can facilitate smooth cross border payments, particularly for economic migrants hoping to send money back home. The Chief Fintech Officer of the top financial authority of Singapore, the Monetary Authority of Singapore (MAS) was recently driven to acknowledge this fact. Sopnendu Mohanty, the top official commented that blockchain has a great deal of potential for cross border payments.

Mohanty was speaking at an event called “Blockchain in Business” being held at the Massachusetts Institute of Technology. He also opined that he personally saw little to recommend for blockchain in terms of its potential for promoting retail bank digital currencies.

Despite his remarks regarding blockchain being unsuitable for promoting retail bank currencies, he was quite enthusiastic about the overall impact of blockchain.

He said that in 2016, when institutions and authorities did not clearly know what the blockchain was all about, Singapore’s apex bank, the MSA took the initiative of experimenting with it, so as to understand it a little better. Clearly, that phase has paid off and MSA now seems to be aware of multiple use cases of blockchain.

As Mohanty detailed, MSA now knows how to use blockchain for payment organization, payment settling against securities and the ways of conducting cross border transactions smoothly and efficiently.

However, his buoyant optimism seemed to have been offset by his assertion that no matter how efficient the technology was, it would never result in facilitating retail bank cryptocurrencies quite successfully.

However, he reiterated his faith in the calibre of the technology by referring to how the central banks of Singapore and Canada had managed to exchange digital currencies over blockchain. He noted:

“The next wave of central bank blockchain projects can make further progress by bringing technology exploration together with policy questions about the future of cross-border payments.”