Yesterday, MAS released a whitepaper specifying the conditions for using CBDCs, encrypted bank deposits and stablecoins based on blockchain technology.
The whitepaper introduces the concept of Purpose Bound Money (PBM), which allows depositors to specify conditions such as validity period and even the type of store where the money can be used for payments.
The study was conducted in collaboration with the International Monetary Fund (IMF), Banca d'Italia, Bank of Korea, other financial institutions and FinTech companies.
"This collaboration has helped achieve important advances in payment efficiency and user experience with digital currencies. More importantly, the research has shown the promise for digital currencies to become a successful major part of the future financial and trading economy" said Sopnendu Mohanty, Director of FinTech at MAS.
Additionally, the PBM system also gives users access to digital currencies through their preferred wallet provider.
Amazon, FAZZ and Grab are collaborating on a PBM test for online retail payments.