A US think tank has launched a “technical sandbox” to further exploration of a potential US central bank (CBDC) digital currency.
In a tweet Wednesday from Digital Dollar Project (DDP), the organization said the new program would investigate “technical and business implementation” questions surrounding a US CBDC.
The organization noted that the first participants in the sandbox are crypto firm Ripple, financial technology firm Digital Asset, software platform Knox Networks and banking solutions firm EMTECH.
The Technical Sandbox program aims to provide the federal government, policymakers and the private sector with a better understanding of how a potential CBDC would be rolled out.
This includes the potential implications for retail and wholesale and international use cases such as cross-border payments.
The US Federal Reserve has yet to decide whether or not to implement a CBDC, but has been exploring the potential risks and benefits associated with it.
On January 20, it released a discussion paper examining the pros and cons of CBDCs, but failed to provide any hints about its future plans.
The paper suggested that CBDCs could act as digital money without credit and liquidity risks, improve cross-border payments, help maintain US dollar dominance, promote financial inclusion and expand public access to safe central bank money.
Potential risks found included an altered financial system in the US, heavier bank runs for other forms of money, diminishing the strength of monetary policy, operational resilience, and a difficult balance between transparency and safeguarding the privacy rights of the consumer.
Meanwhile, China’s own CBDC, the digital yuan, is rapidly being rolled out across the country, while the same is happening in Nigeria with the eNaira. The Bahamas and Eastern Caribbean Currency Union countries have also launched CBDCs, while Russia is set to roll out its own in 2024.
The FedNow service, an instant payment service to be launched in mid-2023, aims to begin “technical testing” in September, according to a Monday press release. FedNow is seen as a step towards an eventual CBDC.
Davis Wright Tremaine LLP partner Alexandra Steinberg Barrage, a former FDIC policy expert, tweeted her support for the program on Wednesday. Barrage suggested that no matter what your opinion of a US CBDC, pilot programs and data are essential when evaluating new technology.
Regardless of your opinion of a US CBDC (retail, wholesale), it is important to evaluate technical approaches alongside varied and complex policy issues. Without data, robust public/private pship, & pilots with consumers and intermediaries, we cannot sharpen our thinking. @Digital_Dollar_ https://t.co/xLy02IOz6b
The Technical Sandbox program kicks off in October, with cross-border payments being the primary focus for early participants.
The program will be released in two separate phases, including an educational phase and a pilot phase.
During the educational phase, providers and participants will try to understand the technology from both a functional and a business perspective. In the pilot phase, the focus will be on identifying and testing specific ways in which CBDCs can be used.
Related: Fed and MIT’s CBDC Study: Distributed Ledger Technology Has ‘Disadvantages’
The Digital Dollar Project is a collaboration between the nonprofit Digital Dollar Foundation and IT consultancy Accenture. Wanting to encourage research and discussion around a US CBDC, DDP released a white paper in May 2020 proposing a tokenized US digital dollar.
The e-CNY pilot was in use in ten regions across China before being introduced at the Beijing and Zhangjiakou Olympics venues in February 2022.
Can XRP be used as currency?
You can use XRP like any other digital currency, both for transactions and as a potential investment. You can also use the Ripple network to process other types of transactions such as currency exchange.
Do banks use XRP? XRP is a technology best known for its digital payment network and protocol. Read also : Real Estate Investment: Does a Home Turn Over a Big Time Loss?. Many major banks use the XRP payment system.
Can Ripple convert to dollars?
| XRP | U.S. dollar |
|---|---|
| 1 XRP | USD 0.368744 |
| 5 XRP | USD 1,84372 |
| 10 XRP | USD 3.68744 |
| 25 XRP | USD 9,21861 |
Is XRP a currency?
Bottom line. Ripple (XRP) is a money transfer and digital currency network that allows transactions to take place many times faster than with Bitcoin or Ethereum.
Can you exchange XRP for cash?
Send XRP to your Kraken address. Depositing crypto to Kraken is as easy as transferring to a crypto address. This may interest you : Department Press Conference – July 28, 2022 – United States Department of State. If you want to sell XRP for cash (eg USD or EUR), you must send us identification and residence documents.
How is XRP doing today?
The price of XRP for today is US$0.3278, with 24-hour trading volume of $836.94M. XRP is -3.27% in the last 24 hours. This may interest you : Apple Music is raising the price of its student plan in the US, the UK and Canada. XRP has a circulating stock of 49.54 B XRP and a max stock of 100 B XRP.
Is XRP a good investment right now? XRP has lost more than 71% of its value in the past year and is down 91% from its all-time high of $3.84. At $0.34, the current XRP price is closer to the launch price of $0.10 than its all-time high of $3.84 in January 2018. XRP surged in early 2021, reaching a price of $1.59, according to the Coinbase statistics.
What is XRP going for today?
The current price is $0.330712 per XRP.
What is the highest price XRP can reach?
According to the technical analysis of XRP prices expected in 2022, the minimum cost of XRP will be $0.41. The maximum level that XRP price can reach is $0.46.
What coin will replace Bitcoin?
1. Ethereum (ETH) Ethereum, commonly known as ether, is the world’s second largest cryptocurrency after bitcoin, sometimes even outperforming bitcoin. Last year, Ethereum made a major upgrade, including reducing its stock of ether, currently at 121.8 million coins as of August.
What will be the next big cryptocurrency? Waves. WAVES-USD is the latest possible candidate to become the next major cryptocurrency in the market. Essentially, Waves is a blockchain platform for building Dapps and smart contracts and launching custom crypto tokens. The platform uses a variant of the PoS consensus mechanism called leased proof-of-stake (LPoS).
Which coin will be like Bitcoin in future?
Binance Coin (BNB) Binance is the largest cryptocurrency exchange in terms of trading volumes. Like bitcoin, binance coin maintains a hard limit on the number of tokens in circulation – in its case 165,337,261 from a maximum of 200,000,000 tokens. This helped the token price rise exponentially in 2021.
