Perfect timing – As the small world of cryptocurrencies tries to survive the infernal flames caused by the fall of FTXthe Federal Reserve (the Fed) suddenly wakes up for its e-dollar. A first pilot project will be launched to technically test the digital dollar.
Fed launches state crypto experiment with banks
After years of dithering and waiting (article from 2019), it is at the precise moment when the cryptosphere is on its knees, that the US central bank announces the advent of its digital dollar.
It is the regional branch of New York of the Federal Reserve American who made this announcement on November 15, 2022, barely 4 days after the FTX group declares bankruptcy. More specifically, it is a question of “the exploration of the feasibility of a system” payments by digital assets.
The regional bank of the Fed also specifies that it will be its services of the New York Innovation Center (NYIC) who will lead this experiment, in collaboration with “banking giants”. Mention is thus made of BNY Mellon, HSBC, Mastercard, or Wells Fargo, among others.
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12 weeks to test a prototype of the digital dollar
This pilot project should be a “proof of concept” which will then make it possible to push the arrival of a digitized dollar using the distributed ledger technology (DLT).
The test of central bank digital currency (MNBC) will be conducted on 12 weeks. It aims to set up an interoperable network called ” wholesale “ between the central bank and private commercial banks. As opposed to a so-called “retail” network, with individuals.
“NYIC looks forward to collaborating with members of the banking community. This is to advance research on asset tokenization, and the future of financial market infrastructure, in the United States. (…)”
Per von Zelowitz, director of the New York Innovation Center
It must be said that the United States has a certain delay to be filled in relation to the China. Indeed, Xi Jinping’s country is already advanced to the point of designing smart contracts for its digital yuan network. As to whether all these MNBCs will be a problem for the private life citizens, that’s a whole different story.
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