Singapore is bullish on the blockchain as the nation turns to the emerging technology for almost every aspect of society; from banking to logistics and shipping.
Despite being a small island nation with a population of only 5.6 million people, it’s an international fintech hub with over 200 banks and innovation labs from international financial institutions including Wells Fargo, UBS, DBS Bank, Citigroup, and MasterCard.
Thanks to Singapore’s business-friendly environment, innovative ecosystem, and diverse pool of talent, it’s also hosted a large number of new blockchain startups. According to Ravi Menon, a senior official from Singapore’s Central bank, the Monetary Authority of Singapore (MAS), there are as many as 50 startups that are working on blockchain-based technologies. A increasing blockchain ecosystem supports these startups Singapore’s community universities are studying the technology, venture capitalists are keen to invest, and huge tech companies are discovering use situations of blockchain as well.
In 2016, according to the MAS web page, Singapore’s Central financial institution started a collaborative undertaking termed ‘Project Ubin’ to investigate blockchain technologies in regards to clearing and settling payments and securities. A consortium of financial institutions including Credit Suisse, DBS Lender, Singapore Exchange, UOB Lender and the Financial institution of The usa Merrill Lynch was involved in the task.
Sopnendu Mohanty, the main fintech officer of MAS, instructed CNBC in Oct 2017 that Singapore has a progressive tactic when it arrives to emerging technologies.
“Don’t fear doing experiments and never tumble into traps of signaling plan modifications. Some regulators are afraid to do experiments mainly because of this huge exterior strain on them. We are making an attempt to travel that culture globally.”
The to start with stage for Challenge Ubin was a evidence-of-idea. The proof-of-notion included conducting inter-bank payments by means of blockchain technological innovation. The MAS announced its successful completion on March 9, 2017. The MAS had also successfully designed program prototypes with The Association of Financial institutions in Singapore (Stomach muscles) of “three unique versions for decentralized interbank payment and settlements with liquidity savings mechanisms.”
According to Reuters, in March 2018, Singapore does not have precise laws regarding cryptocurrencies. The bank, on the other hand, does control activities relating to cryptocurrencies if they pose pitfalls. “We are assessing if further regulations are necessary for trader protection,” said Ong Chong Tee, the deputy controlling director of MAS.