While China and Sweden have gotten ahead in the development of their digital currencies, the United States central bank (FED) has just announced the launch of a pilot on the creation of the digital dollar.
The world’s largest banks ranked 1st in experience
A digital central bank currency (MNBC) soon to be publicly available in the United States? This is what the American central bank (FED) hopes by launching a digital dollar pilot.
For a period of 12 weeks, the test is conducted in collaboration with many financial behemoths traditional such as Mastercard, HSBC, Citigroup, or Wells Fargo.
Furthermore, as Fed Vice President Michelle Neal points out, the end goal of this experiment is speed up transactions between different banking institutions :
“Using a central bank digital dollar is a promising way to speed up payment times in currency markets. »
Currently, this test is carried out exclusively within the banks mentioned above, in a test environment using simulated data.
However, like other central banks around the world who are also planning to launch a digital version of their currency, the purpose of this Fed-led project is the deployment of an MNBC to the general public.
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Where are the MNBCs in the world?
In the United States, this digital dollar pilot project is not the first experience with digital currencies.
In May 2021, when the cryptocurrency market was breaking records, the FED announced that it was interested in MNBCs to think about an implementation in the American economy.
Moreover, Jerome Powell, the president of the FED, announced in a video his will to include Americans in the debates about the future digital dollar :
“The design of a MNBC would raise important monetary policy, financial stability, consumer protection, legal and privacy considerations and will require careful thought and analysis – including with the participation of the public and elected officials. »
Despite everything, in the United States, the FED is not the most advanced structure on the subject: the ” Digital Dollar Project led by Accenture and the Digital Dollar Foundation, has already carried out tests on these new digital currencies.
In May 2022, this non-profit organization announced the launch of five pilots to explore the uses of MNBC over a period of 12 months.
On the other side of the Atlantic, the European institutions formalized their participation in this MNBC race last September. With a potential launch estimated in 2026 or 2027, the digital euro will be split into two currencies: one for citizens, and one for financial institutions.
However, the most advanced country in the field remains China with its digital yuan: more than 100 million digital yuan accounts have already been created since the start of its rollout.
👉 Learn all about central bank digital currencies (MNBC)
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Sources: Reuters, Federal Reserve
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Always enthusiastic about new technologies, I gradually moved closer to activities related to Web3 during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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