A report from Reuters revealed yesterday that Digital Dollar Project, a firm co-instituted by the former chairman of CFTC (Commodity Futures Trading Commission) Christopher Giancarlo as a non-profit organization, plans to start the development of five pilot programs centered around the creation of CBDC – Central Bank Digital Currency in the next 12 months.
The aim of the pilot is to explore different aspects of the digital dollar, including the sociological and functional use cases.
In the next two months, three of these pilot programs will be launched, and their findings will be incorporated into the data already prepared by the Massachusetts Institute of Technology, which has once facilitated very similar programs with the Federal Reserve of the United States.
Giancarlo said, “Papers and conferences are being released every week across the globe about CBDCs based on the data collated from other countries. The missing link is the real data of piloting in the United States to guide debates. Our work is to generate data in the real world.”
Why Digital Dollar?
The Digital Dollar project was launched with the partnership of the Digital Dollar Foundation and the Irish international processing and consulting company Accenture. The mission of the initiative is to collect data of all kinds relating to CBDCs that will help the policymakers in the United States to create and launch a digital dollar.
Commenting on the latest advances of China in the field of CBDCs, Giancarlo added, “It is essential that the United States affirms leadership as it has done in the past technological innovations.”
The Emergence of CBDCs
As noted by a crypto blog, while a great number of central banks across the globe are questioning the credibility and legitimacy of bitcoin and other cryptos, a number of them have concluded that creating CBDCs would be a better solution and alternative for digital payments.
For example, based on the data released from a survey by the Bank for International Settlements, 80% of the global central banks declared that they had begun the study of the digital currency tech, while nearly 20% said there is a possibility they would launch digital currencies in the next six year.
By the way, analysts from the IMF – International Monetary Fund pointed out that centralized digital currencies will not be a threat to Bitcoin, but their success instead depends on the cryptocurrencies.