The Monetary Authority of Singapore (MAS) proposed common standards for different classes of digital assets. The initiative is already supported by several large tech and commercial companies.
The MAS, which combines the functions of Singapore’s central bank and state financial regulatory authority, published a white paper that proposes standards for using different types of digital assets, including central bank digital currencies (CBDC), tokenized bank deposits, and stablecoins.
The document is based on the concept of the Purpose Bound Money (PBM) protocol, which suggests the possibility of unifying the use of different types of digital assets, including those belonging to different systems. The International Monetary Fund, the Bank of Italy, the Bank of Korea, and a number of major financial institutions and FinTech companies participated in the concept development.
Amazon, DBS Bank, FAZZ, Grab, NETS, and UOB have already agreed to test the new system. These companies will test escrow mechanisms for online retail payments and the use of cashback and other rewards based on the PBM protocol.
The proposed concept is based on Project Orchid, an ongoing MAS initiative aimed at developing the competencies and digital infrastructure required to issue the digital Singapore dollar (DSGD) domestically.
The MAS is concurrently working with the New York Innovation Center (NYIC) of the Federal Reserve Bank of New York on a CBDC study under Project Cedar Phase II x Ubin+, examining the interoperability of various wholesale CBDC projects.
