Singapore Tokenizes Fiat Currency - A Glimpse Into The Future

Singapore's Central bank announced in a recent report titled 'The Future Is Here' that it has successfully completed the first phase of testing for a project that aims to digitalize the Singaporean Dollar (SGD) on the Ethereum blockchain. The project is said to be called Project Ubin, which reportedly began in late 2016. The first phase involved a proof-of-concept replacement of the MAS electronic payment system, which is the electronic analog of the Singaporean Dollar. In this prototype model, the transfers take place over the Ethereum blockchain, thereby reducing the high transaction times and fees associated with transferring money with a long term goal of replacing physical notes altogether. All tokens would be based by the Singaporean dollar keeping the net supply the same. The Bank of Canada was trying to implement a payment network similar to this, but announced that it is not compatible with the current infrastructure.

Vitalik Buterin, founder of Ethereum, met with the Russian President to discuss plans to bring this technology to the Russian financial system at the St. Petersburg Economic Forum.

The second phase of Project Ubin is said to focus on testing the viability of a tokenized blockchain based model for secure domestic and international transactions.