The Digital Dollar Project (DDP) launched a new initiative to further explore the technical implementations that may be required for a U.S. central bank digital currency (CBDC).
The new Technical Sandbox Program offers a collaborative space and neutral space for the DDP participants and financial service providers to evaluate the technological, business, and policy approaches to CBDCs. Specifically, program participants will examine real-world technology, the potential implications to business strategies and operations, and seek possible use-case solutions.
“The launch of our Technical Sandbox Program marks the next step in our effort to convene the private and public sector in exploration of a central bank digital currency in the U.S.,” Jennifer Lassiter, executive director of The Digital Dollar Project, said. “We understand how important it is to include a diverse set of views and expertise as we look to answer key questions about how the technology could work, the problems we hope to solve, and the ultimate business and individual outcomes we want to achieve. The marriage of these sectors in our collaboration is essential and will lay the foundation for robust pilots that improve the outcomes and usability of CBDCs.”
The program is slated to begin in early October, with the inaugural cohort focused on cross-border payments.
Each cohort of the program will consist of two phases: an education phase and a pilot phase. The information and results will inform both private and public sector stakeholders on how advancing technical solutions can unlock business value in a transformative way.
“The Digital Dollar Project is excited to bring a broad array of industries and technical experts together to define desired outcomes and explore a wide range of technical design choices in relation to a U.S. CBDC,” Lassiter said. “The results of which will focus on answering critical questions around the impact of a potential U.S. digital dollar. Our Technical Sandbox Program offers the perfect environment to test CBDC hypotheses in a neutral setting with real-world problems for consideration.”
The DDP is committed to providing the federal government, policymakers, and private sector organizations with a stronger, clearer picture of what implementing a CBDC in the United States would look like.