CRYPTANALYSIS - HOUSE VIEW ON KEY ALTCOINS

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42. PROJECT UBIN (Published: 15th Aug, 2017)
Basic Information
Project Ubin was announced on 16 Nov 2016 by MAS, which aimed at creating a digital token for Singapore Dollar (SGD) on the Ethereum blockchain. The project was a partnership between MAS, R3 (a blockchain startup), and a consortium of financial institutions. It consists of several phases, with the first phase focusing on domestic inter-bank payment settlement. 
MAS named the token as SGD-on-ledger and in phase one their sole usage would be allowing banks to settle interbank debts. The bank receiving this token can redeem them to SGD later on. Each SGD-on-ledger are backed by the equivalent amount of SGD held in custody, hence the overall money supply will not be affected by this token and it has full redeem-ability.

Future Development
On 9 March 2017, MAS announced that phase one was successful as a proof-of-concept project  and  The objectives of producing a digital representation of SGD for interbank settlement, testing methods of connecting bank systems to a Distributed Ledger Technology (DLT), and making the MAS Electronic Payment System (MEPS+) interoperate with the DLT for automated collateral management were all achieved. 
While it is still in an early stage, MAS’s next step would be developing links to other countries in order to conduct cross border payments with the SGD-on-ledger. On the other hand, they will collaborate with the Singapore Exchange (SGX) to make fixed income securities trading and settlement more efficient through DLT. In addition, legal issues such as taxation problems with be further investigated. 

Future Development
At first glance the SGD-on-ledger seems to be the SGD version of USDT, but they actually have some fundamental differences. SGD-on-ledger is built on a private blockchain on Ethereum, meaning that it is much more centralised than USDT as the MAS has full control on the blockchain and able to restrict the ability of the others. The upside of this is that users can highly ensure the redeem-ability of the token, and thus the stability of it (unlike USDT).

Risks
However, high-centralisation is a double-edged sword. It violates the nature of cryptocurrency and induced additional risks to holders. For example, since MAS is fully authorised to monitor the network, there are no more privacy for the token holdings.

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