The Monetary Authority of Singapore (MAS) has issued a white paper proposing a common protocol with conditions for the use of digital money including central bank digital currencies (CBDCs), tokenised bank deposits and stablecoins on a distributed ledger. The whitepaper was accompanied by the release of software prototypes that demonstrate the concept of Purpose Bound Money (PBM) which will allow conditions to be specified (e.g. validity period and shop types) when transferring digital money across different systems. The financial institutions and FinTech firms implementing trials of PBM include Amazon, DBS, FAZZ and Grab. The white paper was developed in collaboration with the International Monetary Fund, the central banks of South Korea and Italy, and other financial institutions. It aims to encourage banks, financial institutions and FinTechs to conduct more research into the design considerations relevant to digital money.
CH-020113 (Webpage Portal) 2023-06-21 (Published) 2023-06-26 (Updated)