The Digital Dollar Project (DDP) will start a technical sandbox program starting in October to explore the technical aspects of implementing a U.S. central bank digital currency (CBDC), initially focusing on cross-border payments.
Serving as a collaborative space for DDP participants and financial service providers, the sandbox program aims to provide an objective space for exploring technological, business and policy approaches to CBDCs, according to a press release on Wednesday (Aug. 31).
Sandbox participants will experiment and strive to discover specific use-case solutions that could be possible after surveying the technology currently being used and exploring potential implications to business strategies and operations.
See also: Digital Dollar Debate Shifts as Central Banks Embrace CBDCs
“The launch of our Technical Sandbox Program marks the next step in our effort to convene the private and public sector in exploration of a central bank digital currency in the U.S.,” said Jennifer Lassiter, executive director of The Digital Dollar Project.
“We understand how important it is to include a diverse set of views and expertise as we look to answer key questions about how the technology could work, the problems we hope to solve, and the ultimate business and individual outcomes we want to achieve. The marriage of these sectors in our collaboration is essential and will lay the foundation for robust pilots that improve the outcomes and usability of CBDCs,” Lassiter added.
The education phase of the program consists of DDP partners and participants developing an understanding of the tech and then analyzing the differences in possible design choices. During the pilot phase, partners and participants will collect data on business-level impacts by testing specific CBDC use-case hypotheses.
A wide range of industries and technical experts have come together as part of the DDP to “define desired outcomes and explore a wide range of technical design choices,” Lassiter said.
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