"Wow, Singapore is moving forward, when will Malaysia be?"
The Monetary Authority of Singapore (MAS) has wasted no time in proposing a common protocol that will determine the conditions for the use of various types of digital currency.
On 21 June 2023, MAS published a whitepaper including specifications outlining its new Purpose Boud Money (PBM) concept including the names of financial institutions and fintech firms that plan to implement the pilot*.
*A platform that offers bookkeeping, tax and CFO services for growing businesses.
PBM intends to allow digital currency senders across different systems such as Central Bank Digital Currency (CBDC) or stablecoins, but still be able to witness digital currency transactions including duration and store type.
Please be informed that the whitepaper has been developed in collaboration with the International Monetary Fund (IMF), the central banks of South Korea and Italy including global leaders JPMorgan, Amazon, DBS Bank and so on.
While the whitepaper also encourages central banks, financial institutions and financial technology companies to conduct more research for digital money users.
The move comes as Singapore begins to accept crypto-based businesses and activities, then Circle, the issuer of USD Coin (USDC) on June 7, 2023 also joins other major payment institutions in receiving a license in the country.
A few days earlier, Crypto.com also received its license from MAS for digital payment token services.
According to Sopnendu Mohanty, Chief Fintech Officer (CFO) of MAS said that its collaboration with industry players and policy makers has helped it achieve significant progress in settlement efficiency, merchant acquisition and user experience through the use of digital money.
