What are MAS' views on blockchain and distributed ledger technology (DLT)?
MAS researched these technologies in Project Ubin, "a collaborative project with the industry to explore the use of Blockchain and Distributed Ledger Technology (DLT) for clearing and settlement of payments and securities." "The project aims to help MAS and the industry better understand the technology and the potential benefits it may bring through practical experimentation. This is with the eventual goal of developing simpler to use and more efficient alternatives to today’s systems based on central bank issued digital tokens."
In the Project Ubin Phase 5 Report: "We encourage FinTechs, financial institutions, and the broader technology community to understand the opportunities that blockchain technology brings, and take the leap of bringing meaningful applications to life. As more blockchain-based applications are rolled out, there will be growing interest in deploying payment systems that can fulfil their needs. Lastly, we hope these developments will encourage other central banks and financial institutions to conduct similar and advance existing trials."
MAS has also listed a number of areas where blockchain can be beneficial, including: in trade finance, cross-border payments, digital identity, clearing and settlement, provenance, multi-party aggregation, record-keeping, and re-insurance.