Global banks are working with the NY Federal Reserve on a test of digital dollars. The banks are using digital dollar tokens to “speed up payments.” Reuters reports:
Global banking giants are starting a 12-week digital dollar pilot with the Federal Reserve Bank of New York, the participants announced on Tuesday.
Citigroup Inc , HSBC Holdings Plc (HSBA.L), Mastercard Inc (MA.N) and Wells Fargo & Co (WFC.N) are among the financial companies participating in the experiment alongside the New York Fed’s innovation center, they said in a statement. The project, which is called the regulated liability network, will be conducted in a test environment and use simulated data, the New York Fed said.
The pilot will test how banks using digital dollar tokens in a common database can help speed up payments.
Earlier this month, Michelle Neal, head of the New York Fed’s market’s group, said it sees promise in using a central bank digital dollar to speed up settlement time in currency markets.
You have already read that there are dangers in a central bank digital currency. Eliminating cash has problems. Sweden attempted a “cashless society,” but after some tests, realized that it wasn’t working. So why are people like Bill Gates, big banks, and the Fed so interested in getting rid of cash?
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