The Digital Dollar Project, a non-profit organization that promotes the creation of the digital currency, has launched a sandbox program in order to help the project “explore technical and business implementation questions.” Ripple, a fintech company, is one of the four participants expected to assist the Digital Dollar Project in “exploring technical and business implementation issues”.
Digital Dollar CBDC and Cross Border Payments
The Digital Dollar Project (DDP), an international non-profit organization that is leading discussions on the controversial digital version of U.S. dollars, has announced the launch the “technical Sandbox Program” to encourage further exploration of technical implementations of the central bank’s digital currency (CBDC). The DDP released a statement revealing that the program will begin in October with the first cohort focusing on cross-border payments.
Four organizations, namely Ripple Digital Asset, EMTECH and Knox Networks, will assist the DDP, according to a statement. Participants will have the opportunity to examine real-world technology, and to investigate its possible implications for business strategies as well. Participants will also run test runs to identify possible uses.
Jennifer Lassiter (executive director at DDP) explained the reasons her organization launched the sandbox program.
Our Technical Sandbox Program is the next step in our efforts to bring together the private and public sectors in [the] exploration for a central bank digital money in the U.S.
Lassiter said that the partnership between his organization and the private sector highlights the importance collaboration, but also helps to create the foundation for “robust pilots that improve outcomes and usability of CBDCs.”
Use cases for CBDCs need to be tested
According to the statement, each cohort will consist of two phases: the education phase and the pilot phase. DDP partners and participants will focus on the initial stage, which is about helping them develop a business and functional understanding. This phase will also allow for an assessment of the possible design options.
The non-profit organization stated that it would conduct pilot tests to “identify, test specific CBDC usage-case hypotheses.” This will inform the private and public sectors “on how advancing technological solutions can unlock business value and transformatively.
