Singapore Financial Regulatory Authority proposes a common protocol for digital money ── Amazon, Grab, etc. also cooperate | CoinDesk JAPAN | Coin Desk Japan

The Monetary Authority of Singapore (MAS) has proposed standards for using digital money such as central bank digital currencies (CBDC) and tokenized bank deposits on distributed ledgers.

The technical white paper, created in collaboration with the International Monetary Fund (IMF), the Bank of Italy, the Bank of Korea, as well as financial institutions and fintech companies, proposes a common protocol that “defines the terms of use for underlying digital money.” ing.

According to MAS, Amazon, fintech firm FAZZ and superapp Grab are working together to test an escrow mechanism for online retail transactions. The whitepaper touches not only on technical specifications, but also on “business and operational models for how to program the agreements.”

The white paper points out that the programmability of digital money is a topic of debate. For example, EU regulators have added a provision to the digital euro bill stating that such currencies cannot be programmed, as this could limit the freedom of use that cash has.

“Businesses must ensure that programmability does not compromise the ability of digital money as a medium of exchange.” “The unity of money should be protected, and programmability limits the circulation of money It should not lead to fragmentation of liquidity within the system.” (White Paper)

The protocol is designed to accommodate different ledger technologies and forms of money, and the standardized format will allow users to “access digital money using the wallet provider of their choice.”

“This collaboration between industry players and policy makers has driven significant progress in payment efficiency, acquisition of retailers to use, and user experience in the use of digital money. More importantly, digital money is the future of finance. It has increased prospects to become an important factor in payments and payments,” said Sopnendu Mohanty, chief fintech officer at MAS.

｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Shutterstock
｜Original: Central Banks Propose CBDC, Stablecoin Standards With Amazon, Grab Running Trials