Blog Layout

MAS Unveils Whitepaper for Interoperable CBDCs and Stablecoins

Jun 26, 2023

MAS Unveils Game-Changing Proposal: A Unified Protocol for Stablecoins and Digital Money

Singapore's Monetary Authority (MAS) is taking a significant step towards advancing the future of digital money with its latest proposal. The MAS has released a whitepaper outlining a common protocol for central bank digital currencies (CBDCs), stablecoins, and tokenised bank deposits. This protocol aims to establish standardised conditions for the use of digital money on a distributed ledger, paving the way for seamless interoperability and widespread adoption.


The whitepaper builds upon MAS's Project Orchid, a collaborative initiative aimed at fostering research and understanding among central banks, financial institutions, and fintech companies regarding the design considerations of digital currencies. By bringing together industry players and policymakers, MAS has made significant strides in enhancing settlement efficiency, merchant acquisition, and user experience with digital money, ultimately shaping the future of the financial and payments landscape.


In conjunction with the whitepaper, MAS has also unveiled software prototypes showcasing the concept of Purpose Bound Money (PBM). PBM enables senders to specify conditions, such as validity periods and approved merchant types, when making digital money transfers across different systems. The PBM protocol is designed to be compatible with various ledger technologies and forms of digital money, providing users with the flexibility to access and transfer digital assets using their preferred wallet providers.


The release of the PBM source codes and software prototypes, developed under Project Orchid, signifies a commitment to fostering interoperability across different platforms. The prototypes demonstrate how PBM can be integrated into escrow arrangements, serving as a reference model for policymakers, businesses, and financial institutions to facilitate their experiments and research in the realm of digital money.


Already, financial institutions and fintech firms are seizing the opportunity to explore the potential of PBM. Collaborations between industry leaders are underway to test the usage of PBM in various scenarios. For instance, Amazon, FAZZ, and Grab are piloting an escrow arrangement for online retail payments, ensuring that funds are released to the merchant only upon the customer's receipt of purchased items. This creates a higher level of trust and confidence for both buyers and sellers.


Additionally, leading players such as DBS, Grab, FAZZ, NETS, and UOB are conducting trials to leverage PBM for programmable rewards, including cashback and other incentives. By utilising PBM, these companies aim to enhance consumer experiences while streamlining merchant processes, such as manual reconciliation and onboarding new sales campaigns.


The MAS's whitepaper and the accompanying PBM source codes and prototypes mark a significant milestone in Singapore's journey towards a digital future. With collaborations involving international institutions, financial players, and fintech innovators, MAS is driving the development of a robust framework that promotes interoperability, efficiency, and trust in the digital money ecosystem. As the adoption of digital currencies continues to gain momentum globally, Singapore's forward-thinking approach positions it at the forefront of the digital revolution.


Disclaimer:


GlobalStablecoins.com is an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. Don’t take it as investment advice. Speak to an advisor before you risk investing in an ICO, Cryptocurrencies, Cryptoassets, Security Tokens, Utility Tokens, Exchange Tokens, Global Stablecoins, Stablecoins or eMoney Tokens. GlobalStablecoins.com is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.


Affiliate Disclosure / Sponsored Posts:


If a Sponsored Post contains any mention of a crypto project, we encourage our readers to conduct diligence prior to taking further action. GlobalStablecoins.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.


Before you invest in Cryptoassets you should be aware of the following,


Cryptoassets are considered very high risk, speculative investments.


If you invest in Cryptoassets you should be prepared to lose all your money.


All Sponsored Posts are paid for by crypto projects, coin foundations, advertising firms, PR firms, or other marketing agencies. GlobalStablecoins.com is not a subsidiary of any marketing agency, nor are we owned by any crypto or blockchain foundation.


The purpose of offering Sponsored Posts to our advertisers is to help fund the day-to-day business operations at GlobalStablecoins.com. 


If you come across a Sponsored Post which you believe is fraudulent and/or “scammy,” please contact us and we will perform an immediate investigation


BIS Global Stablecoins

BIS Proposes Recommendations to Regulate Global Stablecoins

07 Mar, 2024
In response to the increasing prominence of global stablecoins (GSCs) and their potential implications for financial stability, the Bank for International Settlements (BIS) has introduced a comprehensive set of recommendations aimed at regulating and supervising these widely adopted digital assets.
Congress Emblem

Stablecoin Bill Advances Amidst White House Opposition

29 Jul, 2023
In a noteworthy development within the U.S. Congress, a long-awaited stablecoin bill made significant progress as it graduated from the House Financial Services Committee. However, the advancement of the Republican-backed bill was marred by a partisan clash and objections from the White House, leaving the committee chair, Patrick McHenry (R-N.C.), lamenting the missed opportunity for a bipartisan deal.
US Congress Stablecoins Bill

Lummis and Gillibrand Target Stablecoins in Sweeping Crypto Regulation Proposal

13 Jul, 2023
A new crypto oversight bill reintroduced by Senators Cynthia Lummis and Kirsten Gillibrand is making waves in the U.S. Senate. The bill proposes that crypto exchanges be overseen by the Commodity Futures Trading Commission (CFTC) rather than the U.S. Securities and Exchange Commission (SEC). Additionally, it calls for all stablecoin issuers to be regulated depository institutions. This bill represents a significant effort to establish U.S. regulation for the crypto industry and addresses the division of oversight between the SEC and CFTC.
Financial Stability Board Global Stablecoins GSC

FSB's Klaas Knot Urges Global Action on Stablecoin Regulation at G20 Summit

13 Jul, 2023
In preparation for the upcoming G20 Finance Ministers and Central Bank Governors meeting in India, Klaas Knot, Chair of the Financial Stability Board (FSB), has highlighted the recent banking turmoil and the FSB's commitment to learning valuable lessons from these events. In a letter addressed to the G20 officials, Knot emphasized the importance of addressing risks associated with crypto-assets and global stablecoin arrangements, as well as providing updates on efforts to tackle climate-related financial risks.
European Banking Authority Stablecoins E-money Tokens

E-money Token Issuers Urged to Anticipate MiCA Rules by EU Banking Authority

12 Jul, 2023
E-Money Token (Stablecoin) issuers have been advised to proactively prepare for the forthcoming regulations set by the European Union, according to the European Banking Authority (EBA). Although the rules of the Markets in Crypto Assets (MiCA) framework will officially come into effect in June 2024, the EBA emphasised the importance of early preparation to protect consumers and avoid disruptions for companies. The MiCA regulation includes provisions on governance, reserve requirements, and licensing for crypto wallet providers and exchanges.

Stablecoin Use Set to Surge, Says Juniper Research

12 Jul, 2023
According to a recent study by Juniper Research, the value of payment transactions made with stablecoins is predicted to surpass $187 billion by 2028, a significant increase from $53 billion in 2023. The study, titled "CBDCS & STABLECOINS: KEY OPPORTUNITIES, REGIONAL ANALYSIS & MARKET FORECASTS 2023-2030," highlights the rapid progress of stablecoins in the cross-border market, where they offer an alternative to slow, expensive, and difficult-to-track existing payment systems.
RBI CBDC

RBI Advocates for CBDC-based Global Financial System

12 Jul, 2023
Reserve Bank of India (RBI) Deputy Governor T Rabi Sankar expressed India's concerns about stablecoins, emphasising their potential threat to policy sovereignty. In a speech at a banking event, Sankar called for a global financial system based on central bank digital currencies (CBDCs) issued by each country for settling global payments. He highlighted the importance of CBDCs in maintaining financial stability and independence, stating, "We should ideally aim for a global financial system which rests on central bank digital currencies (CBDCs) issued by each country to settle global payments, and not rely on stablecoins."
Bank of England Stablecoins

Stablecoins Poised for Integration, Says BOE Governor

11 Jul, 2023
In a speech delivered on July 10, Bank of England (BOE) Governor Andrew Bailey shared his perspective on digital currencies, highlighting the potential of "enhanced digital money" while expressing reservations about cryptocurrencies and stablecoins. Bailey emphasised the need for regulatory oversight, stability, and usability in the evolving financial landscape.

Hong Kong's HKDG Stablecoin Aims to De-Dollarise the Digital Economy

06 Jul, 2023
In a move that could reshape the global stablecoin market, Hong Kong is considering the launch of its own stablecoin, HKDG, to rival established stablecoins such as USDT and USDC. This groundbreaking proposal, co-authored by prominent figures in academia and industry, including Vice Chancellor Wang Yang and angel investor Cai Wensheng, aims to enhance Hong Kong's position in the digital currency landscape and assert its leadership in the blockchain sector.
The Parliamentary Standing Committee on Industry and Technology (INDU) Stablecoins

Canadian Lawmakers Rally Behind Crypto and Push for Innovative Stablecoin Regulation

30 Jun, 2023
Canadian lawmakers have published a groundbreaking report that defends and supports the crypto industry, calling for the recognition of blockchain as a growing sector with the potential to drive job creation and economic growth. The report, which includes 16 recommendations, has garnered praise from industry participants, including leading cryptocurrency exchange Coinbase.
More Posts
Share by: