Fortune 500 company Accenture has partnered with the Digital Dollar Foundation to conduct central bank digital currency testing, or CBDC, in the United States.
Announced on Monday, May 3, the all-new Digital Dollar Project will implement five CBDC pilot programs over the next 12 months. The aim of the project is to generate data to inform American decision makers on how to develop a national digital currency.
The Digital Dollar Project will launch three pilot programs over the next two months, generating data on the functional, sociological and business benefits of a digital greenback.
Al Jazeera reports that the former chairman of the Commodity Futures Trading Commission and co-founder of the Digital Dollar Foundation, Christopher Giancarlo, pointed out the lack of US data regarding the CBDC:
“There are lectures and articles published every week around the world on CBDCs, based on data from other countries. What there is not is actual data and testing from the United States to inform this debate. We are looking to generate this real data. “
However, the Fed is taking a cautious approach as the guardian of the global reserve currency, the report added, with President Jerome Powell responding that it is much more important to turn around a digital dollar than to be fast.
Giancarlo countered that Powell was right to be cautious, but warned the United States could fall behind as China continues with its own CBDC tests and deployments.
While the U.S. Federal Reserve has researched the technology and applications of a CBDC, the U.S. lags behind digital currency initiatives currently underway in many other jurisdictions.
China’s central bank and major state banks recently prepared to test the digital yuan for a shopping festival on May 5.
Accenture has also worked on a number of CBDC projects in other countries, including Canada, Singapore, France and Sweden – which has already completed the first phase of its pilot project.
According to a study by the Bank for International Settlements, 80% of the world’s central banks are already researching digital currencies issued by central banks.