The Bank of Canada and the Monetary Authority of Singapore (MAS) have successfully concluded a test, which was conducted to make cross-border payments leveraging blockchain technology.
The two regulators utilised their own digital currencies in the trial.
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The blockchain payment networks developed by the central banks facilitated the fund transfer.
The network managed by the Bank of Canada is Project Jasper while the one run by MAS is Project Ubin.
All this was done without the need of a third party.
The two parties believe that this will make the cross-border payment process cheaper, quicker and more secure as opposed to the current process which depends on correspondent banking network.
The centrals banks said that the current process is expensive and slow.
Bank of Canada and MAS were supported in the latest initiative by consulting firm Accenture and banking group JP Morgan.
MAS chief fintech officer Sopnendu Mohanty said: “Project Jasper and Project Ubin have built on previous innovations in the payments area to demonstrate that cross-border payment and settlement can be made simpler and more efficient.
“Together these projects have addressed many technical questions and brought the technology to a higher level of maturity.
“The next wave of central bank blockchain projects can make further progress by bringing technology exploration together with policy questions about the future of cross-border payments.”
