State branches of the US Federal Reserve New York Fedtogether with the largest banks in the industry digital dollar announced that it will initiate a pilot application for
NYC FED and giant banks, which will last 12 weeks CBDC will test how the digital dollar performs in payment transactions. Partner banks include traditional finance giants such as BNY Mellon, Citigroup, PNC Bank and Mastercard.
The state branch of the central bank announced that the digital dollar test will only be conducted on simulated data.
“We will conduct our digital dollar test by virtual reconstruction of the actual financial liabilities of the central bank, commercial bank and external issuers. Virtual tests provide a more convenient programmable experience.”
The USDF Consortium, one of the US trade groups, expressed its satisfaction with the digital dollar test.
Rob Morgan, head of the USDF Consortium, talked about the exciting prospect of the CBDC test bringing a blockchain innovation to the real economy. According to Morgan, digital currency can help lower the cost of paying for consumers. CBDCs are also likely to reduce loan costs.
The infrastructure of the pilot application carried out by the NYC FED is the international payment system SWIFT. The consultancy of the project was undertaken by Deloitte, one of the Big Four companies.
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