According to a report by Bloomberg, the Federal Reserve Bank of Boston in a joint effort with the Massachusetts Institute of Technology (MIT) has set July as the proposed date for the release of its digital dollar research.
The project leader at Boston Fed, James Cunha, has noted that at the moment, the research had gotten at least two prototype platforms necessary to its research. On these platforms, users are allowed to store the CBDC digital currency, while also exploring the potential of trading the CBDC with cryptocurrencies in the near future. However, he failed to reveal if any of these platforms were based on blockchain.
Will CBDC Disrupt Anything?
The CBDC (Digital dollar) which is referred to as “fedcoin,” is proposed to be the digital currency of the United States and would be used as an alternative currency to the physical paper bill. Although there’s been raised eyeballs to how that might disrupt the traditional finance industry with the introduction of an entirely new payment method.
Jeremy Powell in a recent report discussed the potential of the digital currency and how important it is for the CBDC to not only exist as an alternative to fiat cash but to co-exist with it. Powell, who is the chairman of the Federal Reserve, revealed that in collaboration with other banks in the US, studies will be conducted to explore the CBDC’s chance of adoption. According to Powell, if it must be successful at all, then the system must be flexible enough to receive it. Therefore, these currencies must be able to co-exist with all other payment methods, not replace them, as skeptics might be led to believe.
At the same time, payment giants such as Visa and MasterCard have upped their game to accommodate the CBDC on their platforms. This would be the first step to its successful co-existence.
As of last December, payment Giant, Visa, has proposed an offline payment system for national digital currencies which they look forward to as a step to help sign transaction messages in cases of no or poor internet connections.
In the news as well, the SEC embattled blockchain payment-focus firm, Ripples, has also revealed its plan for a pilot private ledger which has been specifically tailored to accommodate the Central Bank Digital Currency.