US think tank launches digital dollar research project

A US think tank is launching a digital dollar study program to provide the government with data on the benefits of the national cryptocurrency.

The Digital Dollar Project, initiated by one of the research centers, will study the technical and business implementation of the Central Bank Digital Currency (CBDC). The creators of the project themselves call it a “technical sandbox”. Among the participants of the Digital Dollar Project are companies such as Ripple, Knox and Digital Asset.

The main goal of the program is to provide the federal government, politicians and the private sector with information on how the Central Bank digital currency will work and spread. During the study, experts will explore the potential implications of issuing a digital currency for retail and wholesale trade, as well as cross-border payments.

Researchers will start from the assumption that CBDC can operate like digital money, unencumbered by liquidity or credit risks. They are also betting that the digital dollar can improve cross-border payments, help maintain dollar dominance, and expand access to financial services.

According to the organizers, the program will start in October and will focus specifically on cross-border payments. There will be two stages in total – educational and pilot. At the first stage, the Center will study the technology from a functional and business point of view. The second stage will be devoted to identifying and testing specific ways to use the digital currency of the Central Bank.

Earlier, US Federal Reserve Chairman Jerome Powell said that Congress should seek guidance from the Fed before implementing a central bank digital currency.