Explore the Digital Dollar Project

 

Explore the Digital Dollar Project

The pilot study announced

by the Digital Dollar project received support from Accenture.

The aim of :

this collaboration is to explore and experience

the Central Bank's digital currency (CBDC) in the United States

This represents  :

the latest private sector initiative through the Digital Dollar project.

According to the official press release

• In the current landscape of international payments

• cross-border retail transfers play an important role in

• supporting millions of beneficiaries worldwide

who receive payments from customers residing in the United States.

To assess the potential benefits of

using central banks' cryptocurrencies for cross-border transfers

The pilot study involved :

a leading global payments company

using distributed ledger technology (DLT)

to simulate :

the infrastructure needed to convert digital dollars into Philippine pesos.

The findings and ideas from this study are documented in research linked to the Digital Dollar project entitled "Retail Transboundary Remittance Payments."

In the press release, representatives of

the Digital Dollar project highlighted the importance of the pilot study

As a step :

towards understanding the impact

and collecting relevant data for real-world CBDC use cases in retail settings.

Collaboration with Western Union :

and other partners aims to support research efforts that

resonate with financial institutions, policymakers and technology partners.

What are the main specific advantages?

Officials from Western Union confirmed the benefits identified during

the pilot study of customers and financial institutions.

These benefits include risk reduction

through instant multi-currency resolution, optimal cost

with CBDC settlement allowing a single transaction value and message conversion

Improved :

customer experience benefits non-bankers

and improved transaction visibility through the use of the authorized ledger.

Key findings :

from this pilot study can serve as a basis for future experiences

Identifying :

the basic components of

the transboundary transfer system using distributed ledger technology

Including CBDC version

1. transaction management
2. hosted customer portfolios
3. currency exchange.

Furthermore :

overnment agencies can leverage these results to develop

and expand potential U.S. central bank cryptocurrencies in business scenarios.

Further :

developments from the Digital Dollar Project

• In July 2023, the Digital Dollar Project (DDP)

• released the first working paper in a series of working papers

• which focuses on risk and privacy Safe Adoption of the Digital Dollar

Operating and Compliance Risks of the American Banking Sector.

This working paper presents a draft common

risk framework that identifies potential impacts on the private sector

for federal and state banks :

taking into account the U.S. Central Bank's potential digital currency (CBDC).

The working paper aims to encourage broad public debate.