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MAS is developing the blockchain project Ubin. What is the long-term benefit and potential applications?

Distributed ledger technology, or DLT, has shown potential in making financial transactions and processes more transparent, resilient and at a lower cost. Project Ubin aims to help MAS and the industry better understand the technology and the potential benefits through practical experimentation.

«We are embarking on the cross-border project with the Bank of Canada»

We believe that the strongest benefits are in cross-border transactions, where there are inefficiencies in today’s model of correspondent banking which can potentially be eliminated.

Is it still on timeline, and what are the next steps and costs?

We are embarking on the cross-border project with the Bank of Canada. This particular phase is significantly more complex. Besides the technical implementation, we will also need to look at existing regulations, laws and policies, and how that affects our system design.

«We really do not want dubious ICOs to set up shop in Singapore»

Project Ubin is meant to be a series of practical experimentation, and we look at the benefits and costs only at a broad level. The technology is constantly evolving and improving, so it may be premature to try to quantify the dollar value now.

How do you view Switzerland's recent signalling that it will adopt quite an accommodative stance on ICOs?

I believe what the industry needs is clarity. We clarified our regulatory position on ICOs in August 2017, and subsequently issued a comprehensive guide to digital token offerings in November 2017. We do not want dubious ICOs to set up shop in Singapore.

«We want to create a future where technology is used pervasively in the financial industry»

However, if there are companies that are serious about building a project, and see ICOs as an alternative means of raising funds, we are happy for them to do that in Singapore, so long as they abide by our existing securities laws.

What is the long-term vision and duty of the MAS regarding fintech?

We want to create a future where technology is used pervasively in the financial industry to increase efficiency, create opportunities, allow for better management of risks, and improve lives.

Sopnendu Mohanty is the Monetary Authority of Singapore's fintech chief. He is responsible for development strategies and regulatory policies around technology innovation to «better manage risks, enhance efficiency and strengthen competitiveness in the financial sector». Prior to joining MAS, Mohanty was with Citibank as the head of consumer lab network and programs. He studied at the Birla Institute of Technology and Science in Pilani, India. This is the second installment of finews.asia's interview with Mohanty. The first part was published last week.