Digital Dollar Project (DDP) unveils technical sandbox to explore CBDC solutions

  • The Digital Dollar Projects said that its new program seeks to explore the technological, business, and policy solutions of Digital Dollar.
  • The DDP plans to launch the technical sandbox program in two phases: the educational phase and the pilot phase.

On Wednesday, August 31, a non-profit organization that advocates for a U.S. central bank digital currency (CBDC) – Digital Dollar Project (DDP) – announced its plans for a technical sandbox in order to explain the business, technological, and policy solutions for a Digital Dollar.

The program shall start in early October with a focus on cross-border payments. To evaluate new CBDC infrastructure solutions, the program from DDP plans to bring the public and private sectors together. It will also serve as a collaborative space for other financial services providers and DDP participants.

Related: The digital dollar will eliminate the need for other digital currencies: US Fed Chairman

The goal of launching this program is to examine real-world technology. It also seeks to uncover possible use-case-specific solutions as well as explore potential implications to business strategies and operations. Jennifer Lassiter, executive director of The Digital Dollar Project said:

The launch of our Technical Sandbox Program marks the next step in our effort to convene the private and public sector in exploration of a central bank digital currency in the U.S.

We understand how important it is to include a diverse set of views and expertise as we look 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 marriage of these sectors in our collaboration is essential and will lay the foundation for robust pilots that improve the outcomes and usability of CBDCs.

The DDP technical Sandbox program

The Digital Dollar Project (DDP) said that it will be launching its technical sandbox program in two separate phases. This includes an educational phase and a pilot phase. In the educational phase of the sandbox program, the DDP partners and other participants will develop a functional and business understanding of the technology. Furthermore, participants will also evaluate the differences in possible design choices of Digital Dollar.

In the pilot phase, the DDP partners and participants will identify and test specific CBDC use-case hypotheses. The aim here will be to gather data on business-level impacts. The DDP said that it will share the results with all the public and private stakeholders on how advancing technical solutions can unlock business value in a transformative manner. DDP’s executive director Jennifer Lassiter said:

The Digital Dollar Project is excited to bring a broad array of industries and technical experts together to define desired outcomes and explore a wide range of technical design choices in relation to a U.S. CBDC.

The results of which will focus on answering critical questions around the impact of a potential U.S. digital dollar. Our Technical Sandbox Program offers the perfect environment to test CBDC hypotheses in a neutral setting with real-world problems for consideration.