05 June 2020
The first white paper released by The Digital Dollar Project (TDDP) delves into preparations for the development of a U.S. Central Bank Digital Currency (CBDC).
On May 28, a first white paper was released by the TDDP, giving insight into the potential applications of a CBDC on 30 pages. The digital dollar is being heavily pushed towards by the think tank, and it started with this white paper.
The white paper and the project tenets Some core tenets in the paper revealed what actually is a digital dollar and what it will bring.
As the former leaders of a professional services company Accenture and the Commodity Futures Trading Commission gathered to found The Digital Dollar Project, Daniel Gorfine, the head of the fintech office at CFTC until last autumn and one of the TBBP founders stated: “What we’ve been trying to do through the digital dollar project is catalyze action and this paper is a key step in that direction.”
Through this white paper, Gorfine and J. Christopher Giancarlo, former CFTC Chairman and co-founder of TBBP, tried to convince both the authorities and the public that TBBP will be working alongside traditional financial authorities and existing payment mechanisms, which will include Automated Clearing House Technology (ACHT) and even cash.
New technology will be tested and implemented if satisfactory The digital dollar holds promise for an overwhelming number of use cases, if the paper is to be believed, for example, the ever-growing U.S. - Mexico remittance corridor. In preparation for future programs, testing will be done on these use cases as separate components before implementing them into the whole system:
“Through engagement with stakeholders, the public sector, and our advisory group, we intend to refine these use cases further and identify potential pilots to test the value hypotheses and inform design decisions.”
With regard to the imortance of classifying the wide range of tasks that will be expected of the digital dollar into subdivisions, Gorfine said of pilot tests:
“Piloting can take place in different pieces or bites relative to the overall topic. You can imagine, for example, exploring tokenization and its impact on financial inclusion and access. You can separately look at government benefits programs and how to disburse to individual recipients.”