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Blockchain tech for inter-bank payments

The increasingly popular blockchain technology could soon be harnessed to make inter-bank payments more efficient.

Three new software prototypes for such payments have been developed by a consortium led by the Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS).

It includes financial institutions such as Bank of America Merrill Lynch and the three local banks.

A blockchain is a type of digital ledger using encryption to limit tampering.

The new models are among "the first in the world to implement decentralised netting of payments in a manner that preserves transactional privacy", according to a statement from MAS and ABS yesterday.

Netting refers to consolidating several payments or transactions with the aim of reducing transactions. -THE STRAITS TIMES

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