The Bank of Canada and the Monetary Authority of Singapore (MAS) has conducted a successful pilot test of central bank-backed crypto assets to clear cross-border and cross-currency payments.
The official statement of MAS released on May 2 described the potential of “central bank digital currencies” in increasing the efficiency and reducing risks for international transactions.
“The Bank of Canada and the Monetary Authority of Singapore (MAS) have conducted a successful experiment on cross-border and cross-currency payments using central bank digital currencies. This is the first such trial between two central banks, and has great potential to increase efficiencies and reduce risks for cross-border payments,” MAS said.
According to MAS, the pilot tests relied on the Distributed Ledger Technology (DLT), a term often used to describe a private blockchain network that is centralized to a large extent.
A centralized blockchain network is a protocol that is controlled or overseen by a specific group of node operators that are approved by a central entity to process data.