Recently in a conference panel, a senior official from Singapore’s de facto central bank commented that they did not find any potential in the payment network Ripple.
Sopnendu Mohanty, a chief fintech officer at the Monetary Authority of Singapore (MAS), spoke at MIT’s 2019 Business of Blockchain event. During which he discussed that the city has a pro-blockchain stance and he believes its progress indicates that the technology is being implemented at a national level. This is evident on the back that MAS has conducted a cross-border payment trial with Canada’s central bank earlier this week.
This cross-border payment is formed by linking up to the two states distributed ledger technology (DLT) networks, Project Jasper and Project Ubin. This fund transfer is the first ever payment between two central banks.
This comes at the same time when Ripple has come to gain major banking sector interest in this product. This product uses the XRP token to provide secure and borderless payments. “MoneyTap”, is a similar payment method and it has been a lot of focus and interest from the Japanese banks after the Ripple’s confirmed long-term partnership with the SBI Group. However, Mohanty argues that it is very hand for Singapore to see tangible benefits from this.
He later added that the DLT trial has one thing which is very fascinating and, i.e., it is a very efficient gain for them using this cross-border payment. He also confirmed that they don’t see any much importance in the Ripple bank digital currency. However, they are very much keen on using the cross-border payments to remove the inefficiency in their system.
Ripple has been planning since last year, and they were in talks with MAS about this technology and the potential it has.