Fintech head of Monetary Authority of Singapore (MAS) has claimed that blockchain has the potential for international payments. On the other hand, the regulator doesn`t see the point in cryptocurrencies issued by banks.
Investment platform found out that Sopnendu Mohanty told that in 2016 the regulator had no clear idea, what blockchain is. Thereby, MAS, that at the same time is central bank of Singapore, has decided to hold the number of experiments for better understanding of the technology.
According to Mohanty, at the current moment the organization has discovered some variants of solutions based on blockchain usage. This includes technology involvement for organization of payments in the banking system. Blockchain, for instance, can be used to calculate payments with securities. Besides, central banks of Singapore and Canada within testing applied blockchain for cross-border payments.
It’s quite interesting that, although the technology can increase the efficiency of many financial processes, the regulator hasn’t noticed the future of digital currencies, issued by banks.
“The next wave of central bank`s blockchain project will help to improve understanding of technology. This will also assist to solve legal issues about the future of international payments”, – Mohanty said.