Mastercard, HSBC Announce Digital Dollar Blockchain Project Amid Crypto Crash

Mastercard, HSBC and Wells Fargo, among others in a group of US banking giants, have launched a digital dollar blockchain project amid the ongoing collapse of the shaky crypto market. The name of the scheme is ‘Regulated Liability Network (RLN)’. This proof-of-concept platform is expected to develop advanced payment solutions using blockchain technology. The launch of the RLN is a trial run that will last twelve weeks and work in partnership with the US dollar.

The New York Innovation Center (NYIC), part of the Federal Reserve Bank of New York, will also be part of the program to understand ways to promote digital currency issued by regulated institutions.

“The design of the RLN works only in US dollars where commercial banks issue digital money or ‘tokens’ – representing money deposited by their customers – and settle by simulating central bank deposits in a distributed ledger of many companies,” said the official. . statements with development.

The pilot program is also expected to test the viability of a programmable digital currency design that could be extended to other digital assets within existing laws and regulations.

“The PoC will simulate 100 percent tokens that can be coined and used in other currencies. It will involve a dialogue with the US banking community at large, including community and regional banks. After the completion of the PoC, the group of banks will announce the results,” added the release.

The US is among several other countries that are developing the first projects for CBDCs or Central Bank Digital Currencies.

CBDC is a blockchain-based payment solution that is regulated and regulated by central banks. Currently, India, Jamaica, and China are among several nations working on their own CBDCs.

This research result is expected to be an important contribution to the digital currency literature.

Edward Snowden, a former employee of the US’ National Security Agency (NSA), welcomed the decision on Twitter.

BNY Mellon, Citi, PNC Bank, Swift, TD Bank, Truist, and US Bank are expected to be part of the project.

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