Federal Reserve Bank of New York Launches CBDC Pilot Program

•  New York Innovation Center (NYIC) will participate in a proof-of-concept project.
• The pilot project will explore the potential of a regulated liability network (RLN).

The dilemma around cryptocurrency is increasing, and the use of Central Bank Digital Currency “CBDC” is surging on more countries’ soil. To weigh this, New York has now been added to the list of the famed states that have been launching CBDCs.

The Innovation Center of the Federal Reserve Bank of New York, also known as NYIC announced the launch of a 12-week proof of concept (PoC) project for a CBDC. The pilot program will explore the potential of an interoperable digital currency system called the regulated liability network (RLN).

Per von Zelowitz, Director of the New York Innovation Center stated that;

The NYIC looks forward to collaborating with members of the banking community to advance research on asset tokenization and the future of financial market infrastructures in the U.S. as money and banking evolve.

CBDC Moves Into The Country

New York Innovation Center launches pilot experiment following the publication of research on its wholesale central bank digital currency program. The proposed framework would make use of distributed ledger technology to support developments that will improve financial settlements. Also, it would enable involvement from central banks, commercial banks of multiple sizes, and regulated non-banks.

Further, Banking firms including, Citigroup Inc, HSBC Holdings Plc (HSBA.L), Mastercard Inc, Wells Fargo & Co (WFC.N), and PNC Bank are taking part in the trial with the New York Fed’s innovation center, as per the statement. Moreover, last month, the Hong Kong government announced the introduction of an official framework for the Digital Hong Kong Dollar.