- Mission CBDC on the last stage of Development testing begins.
- More than ten traditional banking giants are working together for CBDC development.
According to the announcement of the traditional financial sector of the U.S, a group of three financial giants has opened up the testing phase of the digital currency platform, which is termed the Regulated Liability Network(RLN).
In the press release of members of the U.S banking community, it is noted that ” Members of the U.S. banking and payments community involved in this PoC (Proof-Of-Concept) are pleased to be working alongside the New York Innovation Center (NYIC) that is part of the Federal Reserve Bank of New York.”
According to financial giants, the RLN will use distributed ledger technology, popularly known as Blockchain, to boost the financial settlement system.
The digital initiative comprises many other traditional market financial bulls like BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Trust, U.S Bank, and Wells Fargo.
The press release also notes that SETL provides the existing technology with digital assets powered by Amazon Web services.
The Regulated Liability Network testing phase will last twelve weeks and only operate in U.S dollars.
The announcement further notes, ” The platform will align with the existing regulatory framework and preserve existing requirements for deposit-based payments processing, notably maintaining know your customer(KYC) and anti-money laundering requirements.
According to some financial experts, the concept of CBDCs was born after the massive success of Bitcoin and other cryptocurrencies. It is also believed that it is because of its distributed ledger technology.
China and Nigeria were the first countries to successfully launch their CBDCs(Central Bank Digital Currency), e-CNY(CBDC of China launched in 2022), and eNaira( Nigerian CBDC launched in October 2021).
In 2022, we came across many announcements on CBDCs(Central Bank Digital Currency), Which means converting any particular state Fiat Currency into digitally issued currencies.
CBDC (Central Bank Digital Currency) is a digital form of central bank currency that is widely available to the general public.
CBDC is quite similar to stablecoin; the stablecoins are pegged in the ratio of 1:1 to USD, and CBDC is also pegged in the ratio of 1:1 to the fiat currency of that specific state or bank issuing the CBDC.
FTX collapse is one of the biggest unprecedented events in the crypto industry in the last few years. Another event similar to the FTX collapse is the Terra/Luna crash.
When Luna collapsed, the crypto industry experienced many problems, and several well-known crypto lenders filed their bankruptcy.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/16/rln-testing-begins-for-cbdc-betterment-u-s-banks/