Cases of use of digital funds in Singapore

 

Cases of use of digital funds in Singapore

The Monetary Authority of Singapore (MAS) announced the publication of a paper to determine the terms of use of central bank digital currencies (CBDCs

 stablecoins and symbolic bank deposits.

Singapore's monetary authority has :

recruited technical support from the International Monetary Fund (IMF), the Bank of Korea (BOK) and a handful of fintech companies to formulate standards.

One of the main themes is the fundamental need to standardize different payment systems to improve the user experience.

Singapore Monetary Authority

President Sopnendu Mohanty said:

• This collaboration between industry actors and policymakers

• has helped to achieve significant achievements in settlement efficiency

• traders' acquisition and user experience using digital funds.

Mohanty added:

"More importantly, they have strengthened prospects for digital money becoming a key component of the financial landscape and future payments."

Apart from the cryptocurrencies of digital central banks

technical details of the Restricted Funds Protocol

(PBM) for Singapore's financial system were revealed for the first time.

The asset class will allow users to customize the type and period of validity of traders, expanding the possibilities of multiple use cases.

PBM will function with other types of

digital money via different ledgers under a common protocol.

Many technology and payment companies are already conducting experiments to investigate cases of multiple use of PBM

With Amazon taking the lead.

Amazon :

1. Grab and FAZZ trio collaborate to
2. deploy PBM for online commerce
3. through warranty arrangements.

Other experiences around PBM focus on programmable rewards

with DBS :

NETS, Grab and UOB experience with customer cashback rewards.

Building on previous initiatives

• The proposed PBM reinforces previous studies

• by MAS to explore the interconnectedness between

• central bank currencies and other payment systems.

The first phase of the project called Project Orchid was revealed

1. The country's financial system
2. does not require digital currencies
3. for central retail banks at this time.

Since then :

the banking regulator has launched several pilot programs to

improve the status of digital payments

1. Including Project Cedar x Ubin
2. in collaboration with
3. the New York Innovation Center (NYIC).

MAS says the studies are designed to improve local and cross-border settlements of the population while reducing banks' settlement efforts.