The non-profit organization promoting the creation of the digital dollar, the Digital Dollar Project, has announced the launch of a sandbox program to kickstart the probe of the technical implementations of the envisaged digital currency. The fintech firm Ripple is among the four participants that are expected to help the Digital Dollar Project “explore technical and business implementation questions.”
Inaugural group to focus on cross-border payments
The Digital Dollar Project (DDP), a non-profit organization discussing a controversial digital version of the US dollar, recently called for “further exploration of a technical implementation” of a central bank digital currency (CBDC). announced the launch of the Technical Sandbox Program for , In a statement, DDP revealed that the sandbox program is set to begin in October “with an inaugural group focused on cross-border payments.”
According to a statement, four organizations namely Ripple, Digital Asset, EMTECH, and Knox Networks will be helping the DDP. The statement added that participants will get an opportunity to scrutinize real-world technology and investigate the likely implications to business strategies as well as operations. Participants will also conduct test runs to determine possible use cases.
Explaining her organization’s reasons for starting the sandbox program, Jennifer Lassiter, an executive director of the DDP, said:
The launch of our tech sandbox program is the next step in our effort to convene the private and public sector[s] In [the] Exploring a Central Bank Digital Currency in the US We understand how important it is to incorporate a wide variety of ideas and expertise as we seek to answer key questions about how technology can work, the problems that We hope to solve, and the final business and personal results we want to achieve.
Lassiter suggested that his organization’s partnership with the private sector not only highlights the importance of collaboration but also helps to lay the foundation “for robust pilots that improve the outcomes and usability of CBDCs.”
Identifying and testing hypotheses for specific CBDC use cases
According to the statement, each group will consist of two phases, an education phase and a pilot phase. The initial phase will focus on helping DDP partners and participants develop a business and functional understanding of the technology. During this phase, differences in potential design options will be evaluated.
During the pilot phase, the non-profit organization said it will conduct tests to “identify and test specific CBDC use-case hypotheses.” These results will be used to inform both the public and private sector “on how advancing technical solutions can unlock business value in a transformative way.”
