This protocol typically includes stablecoins, central bank digital currencies (CBDCs), and tokenized bank deposits.
The PBM protocol also allows its senders to specify conditions when making transfers in digital money. This typically includes factors such as how long the money is considered valid and on which exchange it can be used.
Sopnendu Mohanty, chief fintech officer at MAS, said the initiative will help boost the efficiency of settlements, merchant onboarding, and the user experience when dealing with digital currencies.
However, the protocol was designed to work with different ledger technologies as well as across use cases such as online shopping and customer rewards.
In addition, the authority also shared its software prototypes and non-proprietary code to show how PBM can be applied in guarantee arrangements and other transactions.
Initially, the PBM whitepaper was produced in partnership with the International Monetary Fund, the Bank of Korea, and Banca d’Italia, as well as industry partners that included Amazon, Grab, and Fazz Financial Group.
These partners are also planning to test PBM-based payments and incentives to gain insight into how the technology might help consumers, businesses, and government agencies.
Moreover, PBM is part of MAS’ Project Orchid, which aims to construct the technical skills and capabilities required for the authority to issue a retail CBDC, if need be.
Also, MAS recently announced that it’s reviewing feedback from respondents on proposed crypto regulatory concerns, which it aims to publish by mid-2023.
- Published By Team Genuine Reporter