Singapore's Central Bank Builds Blockchain Lab With R3
The Monetary Authority of Singapore (MAS) has officially announced a partnership with fintech firm R3. The joint effort will also see the launch of a distributed ledger technology (DLT) Center of Excellence in Asia. The Asian DLT lab will focus on expanding the emerging technology across the region.
Also read: China’s First Online Insurance Firm Starts Blockchain R&D
R3 & MAS Will Create a Distributed Ledger Asian Lab and Center of Excellence
The Singapore MAS organization remains focused on blockchain technology and fintech solutions. Just recently, Bitcoin.com reported on the central bank inking blockchain partnerships with countries like South Korea and India. Now MAS will develop an R3 Asia Lab to bolster the technology and its many use cases.
MAS believes fintech-related solutions can improve settlement efficiency and transparency, and ultimately reduce costs. The R3 Asia Lab will be a research and development center to “accommodate visiting specialist DLT technologists, innovators, and business leaders.”
R3 said by placing operations in Asia, it can efficiently work with regional members, local clients, and stimulate technology development in the region. The lab will be at Lattice80 in the Central Business District (CBD) of Singapore and will host a number of leading experts.
“As one of the world’s leading fintech hubs and a key global financial center, Singapore is the ideal location for our Asia lab,” explains David Rutter, Group CEO of R3. “We are honored to have the support from the MAS, and we look forward to working closely with them as we continue to research and develop applications that can help regulators and financial institutions improve efficiency, transparency and reduce costs.”
Singapore’s Central Bank: ‘Blockchain Potential Is Being Realized’
R3’s Tim Grant, CEO of R3’s Lab and Research Center, and MAS advisory panel member said the company’s intent is to support Singapore. The region has been a hotbed for fintech and a leader within the Asia-Pacific environment. “We look forward to deepening our relationships with local financial services companies, regulatory bodies, and the tertiary education community, and to using Singapore as a means to connecting the region with our many initiatives around the world.”
Sopnendu Mohanty, MAS’s Chief Fintech Officer, noticed that the practicalities of blockchains are beginning to be realized. He said that working with the R3 consortia, MAS will conduct rigorous experimentation and encourage the technology’s adoption.
What Are Central Banks Planning to Do With Distributed Ledger Technology?
Central banks worldwide are focusing in on blockchain technology’s potential. The popularity of this protocol can be seen with central banks in the U.S., China, and many other countries. The Bank of Canada (BoC) also announced recently it has already worked with R3. The BoC revealed it experimented with Canadian fiat tethered to a distributed ledger system. With central banks worldwide branching towards this technology, questions remain. What will central banks do with distributed ledgers?
R3 said it’s happy to work with Singapore’s central bank. Moreover, its intention is to spread DLT throughout the Asia-Pacific region.
“The non-exclusivity of R3’s technology choices leaves the option open for members to contract with Singapore-based systems integrators and fintech firms to implement production-ready systems, therefore streamlining implementation of DLT in the region,” R3 said.
What do you think about the partnership between MAS and R3? Let us know in the comments below.
Images via Shutterstock, MAS, and R3 CEV’s website.
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