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Accenture, a Fortune 500 company, has partnered with the Digital Dollar Foundation to conduct CBDC trials in the United States.
The newly formed Digital Dollar Project, which was announced on Monday, May 3, will carry out five CBDC pilot programs over the next 12 months. The project’s goal is to generate data that will inform US policymakers on how to develop a domestic digital currency.
In the next two months, the Digital Dollar Project will launch three pilot programs to collect data on the functional, sociological, and business benefits of a digital greenback.
According to Al Jazeera, Christopher Giancarlo, former chair of the Commodity Futures Trading Commission and co-founder of the Digital Dollar Foundation, emphasized the lack of CBDC data in the United States:
“There are conferences and papers coming out every week around the world on CBDCs based on data from other countries. What there is not, is any real data and testing from the United States to inform that debate. We’re seeking to generate that real-world data.”
The Fed, as the guardian of the world’s reserve currency, is taking a cautious approach, according to the report, with chairman Jerome Powell responding that it is far more important to get a digital dollar right than it is to be fast.
Giancarlo responded that Powell was correct to be cautious, but that the United States could fall further behind as China accelerates its own CBDC testing.
While the Federal Reserve of the United States has conducted research into the technology and applications for a CBDC, the United States lags behind the digital currency initiatives that are currently underway in a number of other jurisdictions.
China’s central bank and major state banks have recently been preparing to put the digital yuan to the test 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.
According to a study by the Bank for International Settlements, 80% of the world’s central banks are already researching central bank-issued digital currencies.