- It’s a purpose-bound money (PBM) protocol
- Banks from China, Italy, the IMF and industry companies participated in the development
The Central Bank of Singapore (MAS) introduced a whitepapep for purpose-bound money (purpose-bound money or PBM). It includes central bank digital currencies (CBDC), tokenized bank deposits and stabelcoins.
The PBM protocol allows senders to specify conditions when making digital money transfers. For example, determine the duration of assets and on which platforms they can be used.
The standard will help improve settlement efficiency, make it easier for merchants to adapt to new digital currencies, and improve user experience, according to MAS.
The protocol was designed to work with a variety of registry technologies. It also takes into account various uses – online purchases, customer bonuses, etc.. MAS also offers prototype software and open-source solutions that can be used in transactions.
The white paper was helped by partners from the IMF, Banca d’Italia and Bank of Korea, as well as industry companies including Grab, Amazon and Fazz Financial Group. These participants plan to be the first to test PBM payments. They will then report on how consumers, businesses and financial institutions benefit from the protocol.
Banks in New York and Singapore already tested CBDC in May, but with different technology.