• The pilot is said to include a comprehensive dialogue with the US banking community.

• The banking group participants are said not to be committed to any future phase of work upon the completion of this pilot program. 

The Federal Reserve Bank of New York has announced that it is collaborating with major commercial banks to launch a 12-week pilot project for its Central Bank Digital Currency (CBDC). According to the official announcement, the idea is to put the technical feasibility, legal viability, and business applicability of distributed ledger technology on a Regulated Liability Network (RLN) to test.

FED will participate in a proof-of-concept project to explore the feasibility of an interoperable network of central bank wholesale digital money and commercial bank digital money operating on a shared multi-entity distributed ledger.

The pilot is said to include a comprehensive dialogue with the US banking community. The banks that were considered for this project are Citi, HSBC, TD Bank, Wells Fargo, BNY Mellon, U.S. Bank, Mastercard, PNC Bank, and Truist. 

In a joint announcement, it was stated that the project would use only simulated data with no intention of advancing any specific policy outcome. In addition, it is not intended to portray that the Federal Reserve is making any decision about the need to issue retail or wholesale CBDC. According to the report, the findings would be released immediately after the conclusion is made. 

Some key aspects of the CBDC pilot

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