The Digital Dollar Project, an initiative born out of a partnership between Accenture and the Digital Dollar Foundation, announced on Monday, May 3, the launch of five pilot projects over the next 12 months to test the potential of a future digital bank currency. central, report Reuters.
Unlike a cryptocurrency that is traded peer to peer outside a state system, a central bank digital currency abbreviated “MNBC” is only a virtual representation of a fiat currency managed by a bank. central.
Funded by Accenture
These private projects will be funded by Accenture and will involve financial companies, retailers and non-governmental organizations. The goal is to generate data that can help US decision makers develop a digital dollar later.
The United States Federal Reserve (FED), the central bank of the United States, is not part of this program. But it is not for all that absent from projects linked to a future central bank money. She is currently working with the Massachusetts Institute of Technology (MIT) to build a dedicated technology platform for a future digital dollar. FED President Jerome Powell says it’s more important to find a system “fair” what “fast“.
A multiplication of experiments
More and more states are experimenting with digital fiat currencies. China is a pioneer in this area. The first tests of its currency were announced in July 2020 with Didi Chuxing and the Chinese Central Bank. In Europe, the Swedish Central Bank has been experimenting since February 2020 with a public cryptocurrency with Accenture as well. The Banque de France also wants to test an e-euro.
Although supporters find many benefits in MNBCs such as financial stability, these assets raise many questions. Indeed, they could generate negative externalities on liquidity, profitability and banking intermediation. “The risks associated with large and / or sudden conversions of bank deposits into central money should, as such, be strictly studied.“, warned François Villeroy de Galhau, the governor of the Bank of France. The questions of money laundering and terrorism will also have to be settled.
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