A 12-week digital dollar pilot program is being jointly developed by global banks and the Federal Reserve Bank of New York. Some of the major financial institutions taking part in this brand-new project with the New York Fed include Mastercard, Citigroup, Wells Fargo, and others.
The project, which will be carried out in a test environment using simulated data, will examine how banks use digital dollar tokens, the New York Fed has stated.
According to a Reuters report, this development comes after Michelle Neal, the head of the New York Federal Reserve, raised the potential of a digital dollar. Neal saw an opportunity, “in using a central bank digital dollar to speed up settlement time in currency markets.”
A timeline for the experiment’s execution was, however, not included in the announcement.
