Home » NY Fed launches 12-week CBDC pilot program with major banks

NY Fed launches 12-week CBDC pilot program with major banks

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The Innovation Center (NYIC) of the Federal Reserve Bank of New York has announced the launch of a 12-week proof-of-concept pilot for central bank digital currencies (CBDC).

In a November 15 announcement, the New York Fed Said The program will explore the feasibility of “an interoperable network in which central bank wholesale digital money and commercial bank digital money operate on a shared multi-entity distributed ledger” on a regulated liability network. Bank giants such as BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, US Bank and Wells Fargo will participate. Participation The pilot will issue tokens and settle trades through simulated central bank reserves.

“NYIC looks forward to working with members of the banking community to advance research on asset tokenization and the future of U.S. financial market infrastructure as money and banking evolve,” said Per von, NYIC Director. Zelowitz said.

Proof-of-concept projects will test the “technical feasibility, legal feasibility and business applicability” of distributed ledger technology, simulate tokens and explore regulatory frameworks. The New York Federal Reserve said the project “could potentially be extended to multi-currency operations and regulated stablecoins.”

Related: US Congressman Deploys Digital Dollar Argument

Start of NYIC Pilot Project Followed by centers publishing research The first phase of the CBDC trial, called Project Cedar, will tested Forex spot trading to determine if blockchain solutions can improve “speed, cost and access of cross-border wholesale payments.”

Federal regulators in the United States have not reached consensus on whether to launch a digital dollar in the country, but government agencies and the private sector are exploring the possibility. After issuing an executive order aimed at establishing questioned what the role of Congress was On passing legislation in favor of CBDC and how the digital dollar will curtail similar innovations from the private sector.