Fortune 500 company Accenture has partnered with the Digital Dollar Foundation to conduct CBDC [Central Bank Digital Currency] trials in the United States.
The newly launched Digital Dollar Project, announced on Monday May 3rd, will run five CBDC pilot programs over the next 12 months. The aim of the project is to generate data to inform US policy makers about the development of a domestic digital currency.
The Digital Dollar Project will launch three pilot programs over the next two months that will generate data on the functional, sociological and business benefits of a digital greenback.
Al Jazeera reports that former chairman of the Commodity Futures Trading Commission and co-founder of the Digital Dollar Foundation, Christopher Giancarlo, highlighted the lack of US data on CBDC:
“Every week there are conferences and lectures on CBDCs around the world that are based on data from other countries. What is missing is real data and testing from the United States to inform this debate. We want to generate this real data. "
However, the Fed is taking a cautious approach as the guardian of the world's reserve currency, the report added. Chairman Jerome Powell responded that getting a digital dollar right was far more important than being fast.
Giancarlo countered that Powell was right to be cautious, but warned that the US could fall further behind if China pushes its own CBDC tests and interventions.
While the US Federal Reserve has researched the technology and applications for a CBDC, the United States is lagging behind the digital currency initiatives currently running in numerous other countries.
China's central bank and leading state banks recently prepared to test the digital yuan for a shopping festival on May 5th.
Accenture has also worked on a number of CBDC projects in other countries including Canada, Singapore, France and Sweden, which have already completed the first phase of their pilot project.
According to a study by the Bank for International Settlements, 80% of the world's central banks examine digital currencies already issued by central banks.