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HomeNewsCBDC Revolution: JPMorgan, Amazon, IMF, and Industry Titans Forge Path as Bitcoin...

CBDC Revolution: JPMorgan, Amazon, IMF, and Industry Titans Forge Path as Bitcoin Battles for Financial Freedom

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  • Singapore’s Monetary Authority proposes a common standard for digital currencies, including stablecoins, tokenized bank deposits, and central bank digital currencies.
  • Industry giants like JPMorgan, Amazon, and the IMF contribute to the whitepaper on digital money protocol, part of the collaborative Project Orchid.

Singapore’s Monetary Authority (MAS) has put forth a proposal for a common standard governing the use of digital currencies. This initiative aims to provide clarity and specify conditions for various types of digital money, including stablecoins, tokenized bank deposits, and central bank digital currencies (CBDCs). The MAS’s whitepaper on digital money protocol has attracted contributions from prominent institutions, including the International Monetary Fund (IMF), JPMorgan, Amazon, DBS Bank, and others.

The whitepaper, published on June 21, outlines the concept of Purpose Bound Money (PBM) and proposes a common protocol that defines the conditions for utilizing digital money on a distributed ledger. PBM enables senders to specify conditions for their digital money transactions, ranging from validity periods to designated shops for redemption.

Project Orchid, a collaborative effort between the MAS and industry partners, underpins the development of the foundational digital infrastructure and platforms for digital currency use cases. The whitepaper details the lifecycle of PBM, covering issuance, redemption, and the protocol for interacting with digital currencies that support PBM.

The PBM protocol is designed to be compatible with multiple ledger technologies and forms of money, ensuring users can access digital money through their preferred digital wallets and transfer digital assets seamlessly. The goal is to enhance settlement efficiency, merchant acquisition, and overall user experience in digital money transactions.

Leading companies and financial giants are actively participating in trials to test the effectiveness of Purpose Bound Money. Notable collaborations include Amazon, FAZZ, and Grab, which are working on a pilot use case for online retail payments. This involves escrow arrangements that ensure payment is released only when the customer receives the purchased items. Additionally, plans are in place to utilize PBM for cashback programs and other incentives aimed at improving consumer experiences.

The collaborative efforts between industry players and policymakers have already yielded significant advancements in settlement efficiency and user experience with digital money. This progress paves the way for digital money to become a key component of the future financial and payments landscape, according to Sopnendu Mohanty, Chief FinTech Officer at MAS.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628
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