Will Digital Dollars Flood the Market? The project is in experimental stage. The New York Fed (Federal Reserve Bank), which is coordinating the 12-week experiment, announced on Tuesday that several international banks and payment institutions will participate in the experiment on the digital dollar. It “aims to explore the feasibility of an operable central bank digital currency network,” the New York Fed said in a statement.
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The US Federal Reserve (Fed) has been working on the matter for years, particularly concerned about the risks associated with the digital dollar.
In detail, the trial is to test “technical feasibility, legal feasibility and business aspect”, the company underlines. “This program will be conducted in an experimental environment and will use only simulated data. It is not intended to advance any specific conclusion or indicate any immediate decisions the Federal Reserve will make,” it said.
Project on “Future of Money”.
A number of major international banks and financial institutions are participating in the trial, including Citi, HSBC, Wells Fargo and MasterCard.
The central bank was instructed in March by the Biden administration to study the steps necessary to set up this central bank digital currency.
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Faced with the global growth of cryptocurrencies like Bitcoin and the growing use of digital payments, US President Joe Biden signed a decree in March asking the Ministry of Economy to submit a report on the “future of money” to him within six months. ”. He actually got a nine, which suggests he needs to continue working on the subject.