Blockchain for Banking News

Digital Dollar Project launches CBDC sandbox with Digital Asset, Ripple, others

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The Digital Dollar Project is launching a central bank digital currency (CBDC) Technical Sandbox Program in October. The U.S. private sector program is initially partnering with Digital Asset, EMTECH, Knox Networks, and Ripple to explore cross border payments.

Jennifer Lassiter, executive director of The Digital Dollar Project, said the aim is to “answer key questions about how the technology could work, the problems we hope to solve, and the ultimate business and individual outcomes we want to achieve.”

The Digital Dollar Project was founded in January 2020 by Accenture and former Chair of the Commodity Futures Trading Commission (CFTC) J. Christopher Giancarlo’s Digital Dollar Foundation. Last year Accenture agreed to fund five of the DDP’s CBDC pilot programs.

This April, the DTCC, the world’s largest securities settlement organization, said it was working with the DDP on a stock settlement project to test a tokenized CBDC. The DTCC’s Project Lithium aims to explore atomic settlement in which the stock and money change hands simultaneously.

While that use case may be wholesale, the DDP is also exploring retail and cross border CBDC use cases. Apart from specific technology trials, the organization has also responded to several digital assets and CBDC consultations conducted by the U.S. government.

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