- This is the purpose-bound money (PBM) protocol.
- The banks of China, Italy, the IMF and industry companies participated in the development
Central Bank of Singapore (MAS) introduced whitepapep for the intended use of digital currencies (purpose-bound money or PBM). It included central bank digital currencies (CBDC), tokenized bank deposits and stablecoins.
The PBM protocol allows senders to specify conditions when making transfers in digital money. For example, determine the expiration date of assets and on which platforms they can be used.
According to MAS, the standard will help improve settlement efficiency, make it easier for merchants to adapt to new digital currencies, and improve user experience.
The protocol has been designed to work with various registry technologies. It also takes into account various use cases – online shopping, customer bonuses, etc. MAS also offers prototype software and open source solutions that can be used in transactions.
IMF partners, Banca d’Italia and Bank of Korea, as well as industry firms including Grab, Amazon and Fazz Financial Group, contributed to the technical paper. These participants plan to be the first to test PBM-based payments. Next, they will present a report on how this protocol benefits consumers, businesses, and financial institutions.
In May, banks in New York and Singapore already tested CBDC, but using a different technology.