Wednesday, February 8, 2023
- Advertisment -
HomeNewsBusinessCBDC pilot results published by DTCC

CBDC pilot results published by DTCC

The results of DTCC’s pilot experiment to examine how wholesale central bank digital currency (CBDC) and tokenized securities might function in the US settlement system have been made public. Together with the Digital Dollar Project, the project was directed.

Accenture created a replicated CBDC network for DTCC to test their digital settlement network prototype against tokenside dollars as part of the trial, which was first known as Project Lithium. Several other prestigious companies, including Bank of America, Citi, and Northern

According to the study “Exploring Post-Trade Security Settlement with a US Central Bank Digital Currency,” asset encumbrance and multilateral settlement methods are crucial components of CBDC systems. Interoperability between various networks was also mentioned as a crucial factor.

To facilitate CBDC security settlements, the system linked two asset networks, reducing communication dependencies and eliminating counterparty risk. The pilot also evaluated network governance, with administrators equipped to handle any potential transactional problems.

Along with describing adoption rates, implementation costs, and prospective governance models, the report also considers the future of the sector.

Looking ahead, it was noted that having access to a digital Federal Reserve payments system might spur innovation and business opportunities in the industry, and that using a CBDC network should increase business efficiency, transparency, and reporting.

According to Jennifer Peve, managing director at DTCC, “A US CBDC should be extensively investigated in conjunction with key stakeholders across the public and business sectors as a potential digital alternative to currency. The pilot’s findings can help market participants and US policymakers better understand the numerous requirements associated with this new technological and monetary paradigm.

“The findings from this pilot serve as crucial information to inform global CBDC developments and conversations that are rapidly increasing across sectors,” says Jennifer Lassiter, executive director of the DDP. The development of US markets depends on an understanding of how CBDC technology affects this crucial component of the financial market infrastructure, which will also guide CBDC research and experimentation globally.

News Summary:

  • CBDC pilot results published by DTCC
  • Check all news and articles from the latest Business news updates.
Patrick Huston
Patrick Huston
As a senior editor, Patrick is a professional who is in charge of putting out business news. As a senior editor, Patrick is likely to be in charge of the duties of junior editors and writers, make sure the content is correct and high-quality, and work with other departments to make sure the business news is published on time. Patrick knows a lot about business and the latest market trends. He uses this knowledge to choose and edit stories that are both interesting and useful to readers. He also works with reporters and analysts to come up with insightful pieces that help readers keep up with the latest business news. Patrick is a very important part of keeping the public informed and interested in important business issues. He is passionate about journalism and strives for excellence.
RELATED ARTICLES

Latest

- Advertisment -