U. S. Financial Institutions Begin Blockchain Test of Digital Dollar



HBSC, Mastercard, and Wells Fargo announced the launch of a digital money platform on November 15.

Take your time, also read about Vitalik Buterin’s associated wallet selling Ethereum and Yuga Labs acquiring 10KTF and WENEW projects.

Despite the recent events that have shaken the world of crypto, the traditional banking system does not stand still, developing in the field of digital money. Last Tuesday, a group of businesses, including HBS, Mastercard, and Wells Fargo, launched a project called RLN, the Regulated Liability Network. Members of U.S. banking are going to collaborate with NYIC, the New York Innovation Center.

The platform is intended to use the blockchain system, and distributed ledger technology in order to improve the system of financial settlements. One of the platform's goals was to attract participants such as BNY Mellon, Citi, PNC Bank, Swift, and others.

CBDC is stablecoin’s version of fiat currency, which stands for central bank digital currencies. They are tied to a certain fiat currency and are valued at a ratio of 1:1 with it.

The project will run for 12 weeks. During this period, members of the group will issue simulated digital tokens representing customer deposits. At the same time, the calculations will be made based on the central bank reserve model in the collective blockchain.

The platform will comply with KYC standards and anti-money laundering requirements. In the future, the platform will be tested to expand and support other digital assets (e.g., stablecoins). The results of the program will be published after the completion of the project, and participants will be free not to participate in future pilot projects.

"This project will be conducted in a test environment and only use simulated data,” noted the group. The group also clarified that “the Federal Reserve will make any imminent decisions about the appropriateness of issuing retail or wholesale CBDC.”

China is already working on a digital national currency, as is Australia, which launched a pilot program in September. The Australian digital dollar will use Quorum, a private variant of Ethereum.

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