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New York Fed Commences CBDC Digital Dollar Pilot with Global Bank Majors

New York Fed Commences CBDC Digital Dollar Pilot with Global Bank Majors

(16 November 2022 – United States) Global banking majors are commencing a 12-week central bank digital currency (CBDC) regulated liability network pilot with the Federal Reserve Bank of New York.

Citigroup, HSBC, Mastercard, Wells Fargo BNY Mellon, PNC Bank, TD Bank, Truist and US Bank are among the financial heavy weights participating in the digital dollar experiment alongside the New York Fed's Innovation Centre (NYIC).

The project, which is labelled the “regulated liability network”, will be conducted in a test environment and use simulated data. The pilot will run alongside the Phase 1 trial of Project Cedar, a multiphase study designed to help develop a technical framework for a “theoretical wholesale central bank digital currency (wCBDC).”

The pilot will test how banks using digital dollar tokens in a common database can help speed up payments by exploring the feasibility of an interoperable network of central bank wholesale digital money and commercial bank digital money operating on a shared multi-entity distributed ledger/regulated liability network.

“The NYIC looks forward to collaborating with members of the banking community to advance research on asset tokenization and the future of financial market infrastructures in the United States as money and banking evolve” commented NYIC Director, Per von Zelowitz.

“We see promise in using a central bank digital dollar to speed up settlement time in currency markets” stated New York Federal Reserve Market Group Head, Michelle Neal.

East & Partners and Payments Cards & Mobile have partnered to create the world’s first guide to developing future strategies for corporate, B2B and consumer payments, CBDCs and Stablecoins.

The “The Great Switch: Major Corporates are Ready for Blockchain – but can Banks Deliver?” report is available now . based on direct interviews with 900 C-suite professionals across nine key markets in Europe, North America, the Middle East and APAC.

  • What key pain points do corporates foresee CBDCs alleviating?
  • What are the key risks associated with sovereign digital currencies?
  • What treasury function are they planning to initially implement CBDC technology?
  • Are corporates looking to CBDCs for trade finance and cross border solutions?
  • Are corporates aware of the risks of CBDCs?
  • Will CBDC roll-outs drive wider blockchain adoption?

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