Free Newsletter Get the hottest Fintech Singapore News once a month in your InboxThe Monetary Authority of Singapore (MAS) has proposed a common protocol for digital money as financial institutions and fintech firms are launching trials for purpose bound money (PBM)under different scenarios. In its latest whitepaper, MAS details technical specifications that outline the PBM lifecycle from issuance to redemption and the protocol to interface with digital currencies backing it. Sopnendu Mohanty, Chief Fintech Officer, MAS, said,“This collaboration among industry players and policymakers has helped achieve important advances in settlement efficiency, merchant acquisition, and user experience with the use of digital money. More importantly, it has enhanced the prospects for digital money becoming a key component of the future financial and payments landscape.”The PBM whitepaper builds on MAS’ Project Orchid, and aims to encourage greater research among central banks, FIs, and fintechs, to understand the design considerations in the use of digital money. The open source codes and prototypes demonstrate how PBM can be used to embed digital money in escrow arrangements.