The Private Sector Initiative Digital Dollar Project has announced that a total of five such schemes will be launched to explore the potential benefits of the Digital Central Bank Currency (CPTC). It is a partnership between management consulting Accenture and the Digital Dollar Foundation, a non-profit foundation. The initiative was launched last year to support research on a digital currency in the United States.
Christopher Giancarlo, co – founder of the Digital Dollar Foundation, said there are CPTC conferences around the world and new articles are coming out every week based on data from other countries. “There are no real-world data or tests from the United States to trigger the debate,” he said. This data should now be generated.
Central banks around the world are currently exploring the introduction of digital versions of their currencies. This is because the digitization of payment transactions is advancing and the use of money is declining in many countries. So central banks are pushing for technological advances and not to lose touch with the monetary sovereignty of large technology groups. Like banknotes and coins, CPTCs should be an easy-to-use legal tender in digital form.
Works on MIT technology
In the United States, the central bank was very cautious in this regard. The Federal Reserve is currently working on technology for e-dollars with the Massachusetts Institute of Technology (MIT) in Cambridge, near Boston. Federal Reserve Chairman Jerome Powell said last week that it was more important to get it right than to be quick.
According to Giancarlo, Powell was right in his warning. But the United States must ensure in the debate that values such as protection of privacy, free trade and freedom of speech are taken into account in growth, as China is the leader in central bank digital currencies. Three of the pilot projects are scheduled to launch in the next two months. They aim to complete the central bank’s MIT program and provide data on the operation and use of the digital dollar. These should also be published soon.
Accenture has worked on a number of CPTC projects, including in Canada, Singapore and France. In the Eurozone, the European Central Bank wants to determine by the middle of the year whether it wants to give the green light to the e-Euro project.
(Reuters / cash)