The Singapore Monetary Authority, called MAS, and the Bank of France jointly announced on Thursday. They stated their success in completing a full experiment on cross-border settlement and payment using blockchain technology and CBDCs.
Blockchain technology is a decentralized ledger distributed to record the earliest known history of a crypto asset. The data design on a blockchain cannot be modified, making it a legitimate and secure agitator for payment industries.
The completed CBDC experiment was done with JPMorgan’s digital currency-focused expertise and support on the Onyx division. Based on blockchain permission that is privacy-enabled with emphasis on the Quorum blockchain infrastructure of the investment bank.
The Monetary Authority of Singapore–MAS and the Bank of France simulated cross-currency and cross-border transactions during the experiment. They did it for the Euro and the dollar-based CBDC in Singapore.
The experiment is constrained to just 2 central banks, but the multiple CBDCs network designs have scaled it up.
According to the announcement, the experiment now allows multiple commercial banks and central banks situated in various locations to participate.
The pilot also demonstrated interoperability across various kinds of cloud infrastructure. It also sets up blockchain nodes across public and private cloud infrastructures in Singapore and France.
The experiment encourages adopting a smart contract to manage automated market-making services and liquidity pools for Singapore SGD and France EUR currency pairs.
It also aims at reducing the number of corresponding bank parties existing in the cross-border transaction payment chain, which can reduce compliance and legal cost.