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- In collaboration with the government of Singapore, JPMorgan, Amazon, IMF, and other industry heavyweights are working on a common standard for the use of digital money.
- The IMF has received requests from over 40 countries for assistance to develop the CBDC for use in domestic and international economic development.
The Monetary Authority of Singapore (MAS) is reportedly working with some of the largest financial institutions and the United Nations body International Monetary Fund (IMF) on a common standard for the use of digital money. The Monetary Authority of Singapore has published a whitepaper on Purpose Bound Money (PBM) with the contribution of IMF, central banks of South Korea and Italy, as well as global leaders such as JPMorgan, Amazon, DBS Bank, and others.
It is clear around the globe that governments are quickening their pace to develop their digital currencies, also known as CBDCs, with growing interest from big banks and investors. But these CBDCs have lacked a common protocol to specify conditions for the use. The whitepaper details the concept of Purpose Bound Money (PBM), which is part of the country’s multi-phase approach to creating a vibrant and resilient retail CBDC system.
With the PBM protocol, users are able to use multiple ledger technologies and forms of digital money, enabling users to access CBDCs and transfers using their preferred digital wallets.
Speaking on the collaborations with industry heavyweights, Sopnendu Mohanty, MAS Chief FinTech Officer 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.
An IMF report earlier this year revealed that over 40 countries have approached the IMF to request assistance through CBDC capacity development (CD). Other reports show that over 114 countries, representing over 95 percent of global GDP are in various stages of developing their own CBDCs.
Bitcoin Fights for Financial Freedom
In its previous reports, the MAS has explicitly stated that cryptos “are unlikely to have the potential to be circulated as ‘money’.” This possibly means that the financial regulatory authority plans to undermine the role cryptocurrencies are playing using CBDCs. But as every crypto enthusiast is aware, only cryptocurrencies especially Bitcoin can offer true financial freedom.
As CNF has highlighted, CBDCs raise a concern about privacy with many analysts worried that the government might use this digital money that they can issue, track and control as a political tool. With this, governments could easily influence their citizens by controlling their financial life.
Bitcoin offers complete freedom, allowing users to be their own bank without reliance on traditional financial systems. Bitcoin cannot be regulated, banned, or sanctioned as it is outside of the influence of any government or corporation. In addition, it is the most secure, faster, and cheaper form of money.
