The US not-for-profit Digital Dollar Project revealed on Monday that it is going to introduce five Central Bank Digital Currency (CBDC) pilot programs over the next 12 months. It is to check the potential uses of a United States Central Bank Digital Currency which is going to be the first effort of its kind.
The co-founder of the project, Accenture, is going to provide initial funding for the pilot, which marks the next step in bringing the digital dollar closer to reality.
In addition to this, the involvement of financial firms, retailers, and NGOs points to the aim of generating data that could help the policymakers of the United States develop a digital dollar.
Last year, the Accenture and the Digital Dollar Project of the Digital Dollar Foundation underwent a partnership in order to promote research into a US Central Bank Digital Currency.
The Former Chair of the Commodity Futures Trading Commission and co-founder of the Digital Dollar Foundation, Christopher Giancarlo said:
Adding further to his statement, he went on to say:
They can be understood well as the digital equivalent of banknotes and coins, providing the holders with a direct digital claim on the central bank and allowing them to make instant electronic payments.
Central banks around the world, including in Europe and China, are revving up CBDC projects to fend off the threats from crypto assets and improving the payment systems.