On Monday, October 31st, the Central Bank of Singapore (CBS) announced plans for four pilot projects, set to be conducted this year, that will test the feasibility of a digital Singapore dollar (SGD) for use in payments between individuals, businesses, and the government.
Government agencies, including the Monetary Authority of Singapore (MAS), are set to lead the programs in conjunction with the DBS, Grab, OCBC, and UOB banks, according to a statement by the city state’s central bank.
The trials are focused on testing the concept of purpose-bound money (PBM). PBM is a form of digital currency that enables issuers to set terms when making payments to individuals and entities, including the currency’s period of validity, and the types of retailers it can be used at. In this way, the use of PBMs allows issuers to automate a voucher’s delivery and redemption. DBS believes that small to medium-sized businesses (SMEs), and retail…
