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Global banks are working with the NY Federal Reserve on a test of digital dollars. The banks are using digital dollar tokens to “speed up payments.” Reuters reports:
Global banking giants are starting a 12-week digital dollar pilot with the Federal Reserve Bank of New York, the participants announced on Tuesday.
Citigroup Inc , HSBC Holdings Plc (HSBA.L), Mastercard Inc (MA.N) and Wells Fargo & Co (WFC.N) are among the financial companies participating in the experiment alongside the New York Fed’s innovation center, they said in a statement. The project, which is called the regulated liability network, will be conducted in a test environment and use simulated data, the New York Fed said.
The pilot will test how banks using digital dollar tokens in a common database can help speed up payments.
Earlier this month, Michelle Neal, head of the New York Fed’s market’s group, said it sees promise in using a central bank digital dollar to speed up settlement time in currency markets.
You have already read that there are dangers in a central bank digital currency. Eliminating cash has problems. Sweden attempted a “cashless society,” but after some tests, realized that it wasn’t working. So why are people like Bill Gates, big banks, and the Fed so interested in getting rid of cash?
Action Line: Keep plenty of cash on hand. And get your lazy cash off the couch and put it to work. If you need help, let’s talk.
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