Tuesday, May 11, 2021

Digital Dollar Project to launch five CBDC pilots over the next 12 months.

The Takeaway:

The U.S. nonprofit Digital Dollar Project will launch five pilot programs over the next 12 months to test the potential uses of a U.S. central bank digital currency.

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According to the Reuters report, the private-sector pilots initially will be funded by Accenture Plc and involve financial firms, retailers, and NGOs, among others. The plan is to generate data that could help the United States policymakers develop a digital dollar. A partnership between Accenture and the Digital Dollar Foundation, the Digital Dollar Project, was created last year to promote research into a U.S CBDC. 

 

We’re seeking to generate that real-world data.

Christopher Giancarlo, former chair of the Commodity Futures Trading Commission and co-founder of the Digital Dollar Foundation, said, “conferences and papers are coming out every week around the world on CBDCs based on data from other countries,” “What there is not, is any real data and testing from the United States to inform that debate. We’re seeking to generate that real-world data,” he added. CBDCs are the digital equivalent of banknotes and coins, giving holders a direct digital claim on the central bank and allowing them to make instant electronic payments.

 

Central banks worldwide are revving up CBDC projects.

Central banks across countries, including in China and Europe, are revving up CBDC projects to ward off threats from cryptocurrencies and improve payment systems. The People’s Bank of China has already conducted several pilot projects involving digital yuan dubbed DC/EP. As the U.S dollar is the world’s reserve currency, the U.S. Federal Reserve is moving more cautiously. It is working with the Massachusetts Institute of Technology (MIT) to build a technology platform for a hypothetical digital dollar, but chair Jerome Powell said last week that it is “far more important” to get a digital dollar right than it is to be fast.

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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