MAS: Programmable Retail CBDC trials to begin in Singapore

TronWeekly | | Nov 1, 2022

The first phase of the Monetary Authority of Singapore’s (MAS) Project Orchid investigation into a retail central bank digital currency (CBDC) is now complete.

Although there is no “immediate case” for a retail CBDC in Singapore, the white paper published on October 31 envisioned the infrastructure needed in case one did.

See:  Singapore’s MAS Considers Further Restrictions on Crypto

Programmable Money:  A new kind of digital currency called “purpose-bound money” was also proposed, and a series of experiments attracted major Singaporean banks and government organizations to the study.

The MAS developed its purpose-bound money (PBM), which “specifies the conditions upon which an underlying digital currency can be used,” using the concepts of programmable payment (“the automatic execution of payments once a pre-defined set of conditions are met”) and programmable money (“embedding rules within the medium of exchange itself that define or constrain its usage”).

CBDC Trial Initiative Leads DBS Bank Issuing Digital Singapore Dollars

In a trial initiative, DBS Bank announced that it would issue digital Singapore dollars equipped with smart contract capabilities made available by the Open Government Products office. This would enable rapid settlement and spare retailers one or two days of processing time. Six retailers and one thousand customers are taking part in the pilot.

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