The Digital Dollar Project is the non-profit organization, which is promoting the development of the digital dollar.
It recently announced a sandbox program that would began an investigation into the technical repercussions associated with the development of the digital currency.
There are four companies that are expected to participate in the project and one of them is Ripple Labs, which will explore the business and technical implementations of the central bank digital currency (CBDC).
The DDP is the non-profit that is leading the discussions that are taking place about the digital version of the US dollar.
It recently announced that it was introducing a technical Sandbox program that was meant to explore the technical impact of the CBDC.
The DDP disclosed that this sandbox program was scheduled to begin from October and the initial focus would be on making cross-border payment with the digital dollar.
The statement from the non-profit also revealed that four companies would be participating in the said sandbox program and these include Knox Networks, EMTECH, Digital Asset and Ripple Labs.
According to the statement, the participants would also be able to evaluate real-world technology and would also evaluate the possible implications of the CBDC on business operations and strategies.
Apart from that, the participants would also be involved in test runs for determining possible use cases of the digital dollar.
An executive director of the non-profit, Jennifer Lassiter shed some light on the reasons behind the launch of the sandbox program.
She said that they had launched the Technical Sandbox program in an effort to bring together the public and private sector for exploring the idea of a central bank digital currency (CBDC) in the United States.
She went on to say that including diverse views as well as expertise is of the utmost importance and they want to have answers to questions like the technology that could be used, the problems that can be solved and the ultimate individual and business outcomes.
The executive director also said that their private sector partnership is meant develop robust pilots that can improve the usability and outcomes of CBDCs.
Plus, it also shows by collaboration is important.
There will be two phases of the project, which are the education and pilot phase. The first stage will be aimed at helping the DDP participants and partners in understanding the technology’s functional and business aspects.
This phase will involve evaluating the possible differences that can be implemented in the design. When the time comes for the pilot phase, tests will be conducted by the non-profit organization.
Their purpose will be to highlight and test specific use-cases hypotheses of the central bank digital currency (CBDC).
The results from these tests would be used for informing the public as well as the private sector about how business value can be unlocked through the use of advanced and innovative technical solutions.
CBDC development has picked up in a number of countries and various central banks are working on it.