Digital Dollar Project Is Ready to start US CBDC Pilot Projects - TCR
- Digital Dollar could become a reality
- Helmed by former technocrats from Accenture
- The pilot project will study the impact on small business
The U.S.-based Digital Dollar project is starting several pilot projects to get a feel of how a Federal Reserve-issued central bank digital currency (CBDC) may operate, according to a report by coindesk.com. The organization is a brainchild of former U.S. regulators and executives from the consulting firm Accenture.
The Pros and Cons
Coindesk.com reports that the movie has its supporters and skeptics. The supporters of the move argue that the central bank-issued, a tokenized form of the U.S. currency, the digital dollar, will help financial access and faster disbursement of government aids. It is even more critical today with the COVID-19 pandemic sweeping across the world, and the poorer section of society is more dependent on government aid.
The skeptics, however, argue that the existing financial system is quite capable of handling these tasks. However, several nations are already experimenting with the concept. China’s digital yuan perhaps the most advanced to date.
Helmed by Accenture, the DDF or the Digital Dollar Foundation is the brainchild of three technocrats. Former Commodity Futures Trading Commission Chair (CFTC) J. Christopher Giancarlo, Daniel Gorfine, former LabCFTC Director and Charles Giancarlo gave birth to the idea of a Digital Dollar. It is a private effort and is independent of the Federal Reserve’s research into a CBDC.
Pilot projects to study the impact on individuals without banking access
Coindesk.com quoted David Treat, a global managing director at Accenture, who confirmed that the Digital Dollar Project would launch its first five pilot projects within the following year. The questions which will be dealt with by the pilot project include the benefits of digital dollar for unbanked or underbanked persons. It will also study the benefits for individuals who do not have access to banking services and small businesses.