
The Digital Dollar Project, a non-profit organization promoting the creation of the digital dollar, has announced the launch of a sandbox program to begin exploring the technical implementation of the proposed digital currency. Fintech company Ripple is one of four participants expected to help the digital dollar project “explore technical and business implementation questions.”
Opening group to focus on cross-border payments
The Digital Dollar Project (DDP), a non-profit organization leading discussions around a portable digital version of the US dollar, recently announced the launch of a technical sandbox program to jumpstart the technical implementation of a central bank digital currency (CBDC). . In a statement, DDP said the sandbox program is set to begin in October with “an inaugural team focused on cross-border payments.”
According to the statement, four organizations namely Ripple, Digital Asset, EMTECH and Knox Networks will help DDP. Participants will have the opportunity to explore real-world technology and examine its impact on business strategies and operations, the statement added. Participants conduct test cases to determine use cases.
DDP Executive Director Jennifer Lassiter explains why her organization started the sandblasting program:
The launch of our technical sandbox program marks the next step in our efforts to bring together the private and public sectors.[s] in [the] Central bank digital currency research in the US We will understand how the technology works, the problems we want to solve and how important it is to include different perspectives and expertise when looking to answer the key questions of the ultimate business. And the personal results we want to achieve.
Lassiter noted that his company’s partnership with the private sector not only underscores the importance of collaboration, but also helps lay the foundation for “robust pilots that improve the outcomes and utilization of CBCCs.”
Identify and test specific CBDC case hypotheses
According to the statement, each group will consist of two phases, an educational phase and an experimental phase. The first phase will focus on helping DDP partners and participants develop business and operational understanding of the technology. At this stage, a different evaluation of possible design choices is conducted.
During the testing phase, the non-profit said it would conduct experiments to “identify and test specific CBDC use-case hypotheses.” These results will be used to inform both the public and private sector “how advancing technical solutions can transform business.”
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