The Digital Dollar Project Publishes Updated White Paper Furthering Exploration of a U.S. CBDC
The Digital Dollar Project (DDP) today announced the release of an updated version of its white paper, “Exploring a U.S. CBDC,” offering a global perspective on the rapidly accelerating developments in central bank digital currencies (CBDCs). The white paper details ongoing CBDC projects in 114 countries, including DDP-initiated pilots and research, and revisits seminal concepts first proposed in the DDP’s inaugural white paper. The white paper can be accessed here.
“Exploring a U.S. CBDC” was originally published in May 2020 when CBDC was a relatively novel concept and proposed a “champion model” of the digital dollar, along with eight tenets developed through global research and stakeholder interviews, for public consideration. This most recent version provides a deeper look into the tenets, and offers research-driven observations that confirm the continued relevancy of the DDP’s champion model in 2023.
“When we published the original white paper in 2020, the U.S. government had not yet recognized the importance of exploring a CBDC. Just three years later, both the public and private sectors have moved from a sense of complacency to urgency,” said DDP Executive Chairman and co-founder, J. Christopher Giancarlo.
In addition to evaluating and confirming the champion model, the DDP poses the following recommendations:
- The U.S. government should increase investment and activity in researching and exploring the benefits and challenges of a tokenized digital dollar, including leveraging transparent and innovative public-private partnerships to reimagine the potential “rails” of such a system and evaluate solutions to preserve all forms of privacy while balancing security needs.
- The U.S. government should provide leadership in international digital currency standards setting regardless of whether it decides to deploy a digital dollar.
- The U.S. private sector – including U.S. commercial entities operating in foreign jurisdictions and policy-based academic and non-profit institutions – must understand and consider the strategic and operational impacts of rapidly progressing CBDC deployments abroad.
“Seeing the tremendous progress that has occurred with CBDC development across the world, it is difficult to ignore this prime moment for what the DDP has been researching and exploring during these past years,” said Jennifer Lassiter, Executive Director for The Digital Dollar Project. “Our contributions to shaping the future of money have just begun, and this newly released paper marks an important step for what is to come in the new year.”
In addition to these recommendations, the white paper includes a detailed outlook on CBDC development, including the DDP’s work to inform the national consideration of a digital dollar. This includes the creation of an initial pilot program and completion of the first private-sector initiated pilot with the Depository Trust & Clearing Corporation (DTCC), the establishment of the Open Digital Currency Initiative (ODCI), the launch of DDP’s Technical Sandbox Program, and contributions to public policy thought leadership and expertise.
The DDP is committed to providing policymakers and private sector organizations with a stronger, clearer picture of what implementing a CBDC in the U.S. would look like across retail, wholesale and international use cases.
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