The Singapore MAS has published a white paper to set standards for using digital money in partnership with several reputed groups.
The digital asset industry in Singapore could benefit immensely from a newly published white paper by the Monetary Authority of Singapore (MAS). The Singapore MAS has received help from several international groups, such as the International Monetary Fund, Bank of Korea and others, in preparing the white paper.
The Purpose Bound Money (PBM) protocol was introduced in the white paper, which would set new standards for the transfer of digital money like CBDCs and stablecoins in the country. These standards include types of shops and validity periods.
The Chief Fintech Officer of Singapore MAS, Sopnendu Mohanty, said, “This collaboration among industry players and policymakers has helped achieve important advances in settlement efficiency, merchant acquisition, and user experience with the use of digital money.”
The white paper covers two areas specifically for the digital asset industry: business and operating models and technical specifications. On the other hand, the PBM protocol would be responsible for enabling the use of the wallet and digital ledger technology across various use cases.
The PBM protocol will also go under trials in various scenarios like online commerce, where companies like Amazon and Grab would be involved. The programmable rewards scenario would include players like NETS, UOB and DBS, who would be testing the cashbacks and other incentives based on the PBM protocol.
The Singapore MAS has intended to encourage greater research in the area of digital money and the PBM protocol through this paper. Moreover, the standards established by the white paper could become a norm for the digital asset industry hereafter.