The nonprofit Digital Dollar Project in the US said Monday it will launch five pilot programs over the next 12 months to test the potential uses of the US central bank digital currency, the first of its kind in the United States.
These five pilots will assess whether and how the digital dollar will benefit non-bankers, people with or without access to banking services, and small businesses.
Treat, senior general manager at Accenture, said that these projects will receive support from Accenture, but will be self-financing. The goal of the project is to generate data that can help US policymakers develop the digital dollar. Refusing to share any specific details about these projects, Treat said, “They were designed to be” as close as possible “to the real world application and they expect results to come quickly.
The Digital Dollar Project, a partnership between Accenture and the Digital Dollar Foundation, was created last year to encourage research into the US central bank digital currency (CBDC).
Christopher Giancarlo, former chairman of the Commodity Futures Trading Commission and co-founder of the Digital Dollar Foundation, said: “There are conferences and statements from around the world based on data from other countries on CBDCs, what we do not have is the United States to illuminate this debate. Real data and test to be provided from. We are trying to create these real world data. ”
The Future of the US Digital Dollar
Central banks around the world, including China and Europe, are speeding up CBDC projects to fend off threats from cryptocurrencies and improve payment systems.
As the law representative of the world’s most widely used currency, the US Federal Reserve is more cautious in this regard. Working with the Massachusetts Institute of Technology (MIT) to create a technology platform that supports a hypothetical digital dollar.
But Jerome Powell, the head of the Federal Reserve System, stated last week that getting the digital dollar right is “much more important” than speed.
Giancarlo said Powell was right to be cautious, but as China moves forward, they should address the issue of incorporating US values such as privacy, trade and freedom of speech into the development of CBDCs.
“It is vital that the US takes the lead in digital money, as in previous technological innovations.”
Giancarlo notes that transaction fees prevent many Americans from accessing major financial services, and the digital dollar could also increase financial participation in the United States.
Pilot programs, three of which will begin in the next two months, will complement the Fed’s MIT project by generating data on the functional, sociological, commercial uses, benefits, and other aspects of a digital dollar. The data will be made public.
David Treat, senior managing director at Accenture, said CBDCs will exist alongside other types of physical and electronic money, rather than replace them.