Digital Dollar Pilot is Rolling

Digital Dollar Pilot is Rolling

Not so long ago it was a "conspiracy theory", but now the US Digital Dollar is part way through a 12-week test run. Global banking giants started the 12-week digital dollar pilot with the Federal Reserve Bank of New York late last month.

Citigroup Inc , HSBC Holdings Plc, Mastercard Inc and Wells Fargo & Co are among the financial companies participating in the experiment alongside the New York Fed's innovation center. The project, which is called the Regulated Liability Network, will be conducted in a test environment and use simulated data, the New York Fed said.

The pilot will test how banks using digital dollar tokens in a common database can help speed up payments.

Earlier last month, Michelle Neal, head of the New York Fed's market's group, said it sees promise in using a central bank digital dollar to speed up settlement time in currency markets. That's one reason for it, of course. But stripping away every last shred of American's financial privacy is a far bigger part of it.