The Digital Dollar Project, a nonprofit organization promoting the creation of digital dollars, has announced the launch of a sandbox program to begin exploring technical implementations of the envisioned digital currency. Fintech company Ripple is one of four participants expected to help the Digital Dollar Project “explore technical and business implementation questions.”
First phase to focus on cross-border payments
The Digital Dollar Project (DDP) recently announced the launch of a “technical sandbox program to begin further exploration of the technical implementation” of central bank digital currencies (CBDCs) In a statement, the DDP revealed that the sandbox program will begin in October.” The first cohort will focus on cross-border payments.”
According to the statement, Ripple, Digital Asset, EMTECH, and Knox Networks will be supporting the DDP. The statement adds that participants will have the opportunity to scrutinize real-world technologies and investigate their impact on business strategies and operations. Participants will also conduct test runs to determine possible use cases.
Jennifer Lassiter, executive director of the DDP, said that the reason for launching the sandbox program is.
The launch of our Technical Sandbox Program represents the next step in our effort to convene the private and public sectors in the exploration of central bank digital currency in the United States. We understand how important it is to include a diversity of views and expertise to answer important questions about how technology works, the problems we want to solve, and the ultimate business and personal outcomes we want to achieve.
Lassiter suggested that partnerships between his organization and the private sector not only underscore the importance of collaboration, but also help lay the foundation for “a robust pilot that will improve CBDC outcomes and usability.”
Identifying and Testing Specific CBDC Use Case Hypotheses
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As stated, each cohort 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, an evaluation of the differences between the available design options will be conducted.
In the pilot phase, the NPO said it will conduct tests to “identify and test hypotheses for specific CBDC use cases.” These results will be used to inform both the public and private sectors “how advanced technological solutions can unlock business value in a transformative way.”
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