- PBM intends to let crypto senders establish criteria for digital currency transactions.
- Amazon, DBS, and Grab are just some of the fintech companies testing out PBM.
The Monetary Authority of Singapore (MAS), has proposed a universal protocol that would outline the parameters for the usage of different cryptocurrencies.
The Monetary Authority of Singapore (MAS) released a white paper on its new Purpose Bound Money (PBM) concept on June 21. The report details the idea’s lifespan and lists the financial institutions and fintech companies that will be involved in the pilot program.
Strengthening Positions of Digital Currencies
PBM intends to let digital currency senders establish criteria for digital currency transactions, such as validity duration and kinds of shops, for digital currencies across multiple systems, such as central bank digital currencies (CBDCs) or stablecoins.
This has strengthened the position of digital currencies in the future financial view, according to Sopnendu Mohanty, the chief fintech officer of MAS.
The paper’s development included input from the World Bank, the European Central Bank, the Bank of Italy, the Bank of Korea, and others in the financial sector. Amazon, DBS, and Grab are just some of the fintech companies testing out PBM.
For online purchases, Amazon will explicitly test out escrow-like agreements. Payment to the retailer won’t be made until the buyer has actually received the goods. The white paper also suggests that governments, banks, and fintech firms study the practical applications of digital currency more thoroughly.
This comes as Singapore continues to show support for the cryptocurrency industry. Circle, the company behind the USDC stablecoin, was granted a license on 7 June with other major financial institutions. Crypto exchange Crypto.com, had its own MAS license issued only days before.
