Canada’s central bank, the Bank of Canada (BoC) has concluded a successful test using distributed ledger technology and central bank issued digital currencies with the Monetary Authority of Singapore (MAS), Singapore’s central bank.
The test, the first of its kind between two central banks – Project Jasper and Project Ubin, has been in development since 2016 and was created on different blockchain networks: R3’s Corda and JPMorgan’s Quorum. The differing networks connected by utilizing direct Payment versus Payment (PvP) settlement without the use of an intermediate party by way of a technique called Hashed Time-Locked Contracts (HTLC). The assistance of partners, Accenture and JPMorgan was also critical to the success of the project.
The two central banks said the project demonstrated “great potential to increase efficiencies and reduce risks for cross-border payments.” In their joint announcement the institutions involved also encouraged other global financial community to adopt similar projects to improve the cross border payment system.