The mainstream adoption has already seen the fact that the two central banks use blockchain technology for cross-border payment for the first time.

According to Coindesk's May 2 report, the Bank of Canada (BOC) and the Singapore Monetary Authority (MAS) have completed cross-border payment trials using blockchain technology and central bank digital currency.

Ottawa_-_ON_-_Bank_of_Canada (Source: wikimedia )

On Thursday, the Bank of Canada and the Monetary Authority of Singapore jointly announced the success of the trial, a pilot project jointly conducted by the two central banks for the first time. The project shows that blockchain technology “improves efficiency and reduces cross-border payment risk. Great potential."

In the process of cross-border payments, the Central Bank of Canada and the Monetary Authority of Singapore used a network called hash time-locked contract to network their respective blockchain projects Jasper and Ubin. The connection was made (the two projects are based on two different blockchain networks: Corda for R3 and Quorum for JPMorgan Chase). In addition, the technology allows users to perform simultaneous delivery (PvP) settlement without the need for an intermediary.

Accenture and JPMorgan Chase also provided technical support for the project, which helped develop Corda's projects in Canada and Quorum's projects in Singapore.

Scott Hendry, senior director of financial technology at the Bank of Canada, said:

The process of cross-border payment is complex and expensive. We explored the use of distributed ledger technology (DLT) to try to reduce the cost of cross-border payments and improve the traceability of payments. We gained a lot of valuable in this process. Lessons learned.

As early as 2016, Jasper and Ubin have begun to address the issue of improving bank payment efficiency.

David Treat, General Manager and Global Blockchain Supervisor at Accenture, said:

The success of the Jasper and Ubin projects is an important milestone for modern cross-border and cross-currency transactions.

In addition, the central banks of Canada and Singapore jointly issued a report detailing the different design options for enabling such settlement systems and pointing out:

One of the key challenges facing cross-border payments today is that different countries have different standards, processes, regulations and regulations. Distributed ledger technology can provide an easier and faster way to adopt a centralized approach because it allows different jurisdictions to participate in and control a portion of the network while allowing it to be tightly integrated with the rest of the network.

However, the central banks of the two countries also added that the Jasper-Ubin project is currently only in the experimental stage, and whether the two companies will eventually use blockchain technology for “higher value” cross-border payments remains to be seen.

The Bank of Canada and the Singapore Monetary Authority also called on central banks, financial institutions and technology companies from other countries to join the action, making cross-border payments “cheaper, faster and safer”.