The study’s goal was to understand better the consequences of a U.S. central bank digital currency (CBDC) on post-trade settlement, particularly a sort of securities settlement that assures transfers occur concurrently or nearly concurrently with payment.
These are DvP settlements or atomic settlements. There is no CBDC in the United States that has been created or even authorized.
Settlement practices in the United States differ greatly from those in the rest of the globe. Banks that participated in the settlement trial were Bank of America, Citi, Nomura, Northern Trust, State Street, Virtu Financial, and Wells Fargo.
Under real-world conditions, the study tested a simulated digital US dollar in transactions with tokenized assets on a blockchain network.
Furthermore, the pilot project employed an algorithmic encumbrance method to enforce asset release restrictions, leveraging smart contracts to govern the asset rather than a third party. Transactions in the test system take 12 steps in total.
The prototype system included several netting and settlement options, including T2, T1, and T0 intraday and end-of-day.
This was the first of five pilot projects planned. The Digital Dollar Project was founded in 2020 by the Digital Dollar Foundation and Accenture, a technology consulting business.
The Digital Dollar Project is a nonprofit organization created to encourage research and public discussion on the potential advantages and challenges of a U.S. Central Bank Digital Currency (CBDC) — or a “digital dollar.”
The project is focused on convening private sector thought leaders and proposes possible models to support the public sector through pilot experimentation and working groups. The DDP will identify options for a potential CBDC solution to help enhance monetary policy effectiveness and financial stability; provide needed scalability, security and privacy in retail, wholesale and international payments; and integrate with existing financial infrastructures.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
Coincu News
This product launch marks an innovative step forward for Gate.io in the stablecoin wealth management…
Franklin Templeton FOBXX is now available on Ethereum, extending its presence to seven blockchain networks,…
Dora Factory Vota Launch uses MACI technology to enable private decentralized governance and encrypted on-chain…
Bhutan moved a significant amount of Bitcoin to Binance, likely to take profits, amid rising…
Canadian firm DeFi Technologies introduced the CoreFi Strategy to provide leveraged, regulated Bitcoin and CORE…
Cryptocurrency has come a long way since its early days. With the rise of Bitcoin…
This website uses cookies.