Clicky

New York Fed plots test of centrally controlled digital dollar

Governments are creeping towards controllable currency.

Tired of censorship and surveillance?

Defend free speech and individual liberty online. Push back against Big Tech and media gatekeepers. Subscribe to Reclaim The Net.

The Federal Reserve Bank of New York’s Innovation Center (NYIC) announced that it plans to launch a 12-week proof-of-concept pilot for a central bank digital currency (CBDC).

Related: ? Central Bank Digital Currencies make authoritarianism, censorship, and surveillance easy

In the announcement, the NYIC said that the program would test 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” through a regulated liability network.

It will also test the “technical feasibility, legal viability, and business applicability” of distributed ledgers, as well as simulated tokens. Regulatory frameworks will also be explored. There is a possibility of extending the project to “multi-currency operations and regulated stablecoins.”

“The NYIC looks forward to collaborating with members of the banking community to advance research on asset tokenization and the future of financial market infrastructures in the U.S. as money and banking evolve,” said NYIC Director Per von Zelowitz.

The banks that will participate in the program include Mastercard, TD Bank, BNY Mellon, HSBC, Citi, PNC Bank, Wells Fargo, US Bank, and Truist. They will participate by issuing tokens and settling transactions via simulated central bank reserves.

Meanwhile, federal regulators are yet to agree on whether or not to launch a digital dollar. However, a few months ago, President Joe Biden issued an executive order requiring several agencies to explore the benefits and risks of a CBDC.

If you're tired of censorship and dystopian threats against civil liberties, subscribe to Reclaim The Net.

Tired of censorship and surveillance?

Defend free speech and individual liberty online. Push back against Big Tech and media gatekeepers. Subscribe to Reclaim The Net.

Read more

Share