- JP Morgan’s Blockchain Multi-Currency System is based on Model Implemented by Singapore Regulator
According to reports, MAS (the Monetary Authority of Singapore), the Singaporean financial regulator and banking mogul, JP Morgan have started working on a prototype for a Blockchain-backed system. This new project will be created to carry out cross-border payments with multiple currencies. It is no secret that world banks have rejected the ever-evolving Blockchain technology and cryptocurrency. However, it appears this has changed.
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Reports show that recently, a section of major global banks are finally embracing crypto with Ripple’s xCurrent leading the charge. The rest of the banks are embracing Blockchain Technology. These banks have decided to embrace Blockchain tech due to concerns that crypto will knock them off one day. One example of this is the arrangement between Singaporean regulator MAS and JP Morgan.
Both entities are working on a Blockchain-based platform that will support the use of multiple fiat currencies. JP Morgan’s chief, Jamie Dimon, launched the bank’s crypto, JPM coin. Even though crypto commentators agree that the JP Morgan coin isn’t a crypto, the JPM coin is used for only internal transactions by V.I.P. customers. The coin isn’t truly decentralized. It isn’t traded on exchanges, hence, making it difficult to classify it as a digital currency. However, the banking giant respects Blockchain tech and sees a vast number of opportunities for it.
JP Morgan and MAS are in Opposition to the Growing Usage of Digital Currency Globally
JP Morgan’s decision to work with Singapore’s MAS to create a DLT network for global payments can be tagged as opposing the growing impact and usage of cryptocurrency. Crypto has become popular over the years as it supports cheaper and faster cross-border transactions. Ripple is a good example. The network’s fast pace has enabled it to sign up global banks on its RippleNet product. The new system is designed to integrate with e-commerce Blockchain-based apps. It is developed as part of Project Ubin which will allow other Distributed Ledger Technology networks to easily interact with it.
Here is how the MAS website describes it:
“The new payments network is designed to provide interfaces for separate Blockchain networks allowing them to connect and seamlessly integrate. It will offer additional features that support use cases like Delivery-versus-Payment (DvP) settlements on private exchanges, escrow for trade and conditional payments, along with trade finance payment commitments.”
The new project is being tried by over 40 companies, from the finance sector and beyond it.