The Digital Dollar Project (DDP) was created to encourage research and public discussion on the potential advantages and challenges of a U.S. Central Bank Digital Currency (CBDC) — or a “digital dollar.” The DDP will identify options for a CBDC solution to help enhance monetary policy effectiveness and financial stability; provide needed scalability, security and privacy in retail, wholesale and international payments; and integrate with existing financial infrastructures, including U.S. Federal Reserve-related projects.
The DDP works closely with its Advisory Group, Participants, and Pilot Partners to explore the challenges and opportunities of a U.S. CBDC through a deliberative process, including pilots, stakeholder meetings, roundtable discussions, and open forums. The DDP is open to participants from all relevant sectors, including commercial institutions, the innovation community, non-profit organizations and universities
Certain critical principles drive much of the DDP’s work and should be the foundation of on-going collaborations to develop a U.S. CBDC. For example, we should:
- Leverage private capital and expertise to build and innovate
- Encourage public-private partnerships
- Raise the priority of research and development in creating U. S. government budgets
- Lead the development of worldwide technology norms, standards, and governance models that reflect democratic values and interests
- Develop and adopt advanced technology applications within the government and improve the desirability of the government as a customer of the private sector
- Encourage state and local governments to adopt similar actions
We see a critical opportunity for the United States to be a leader in advancing a CBDC, which would help to ensure that our democratic values are sustained and enshrined in the future of money. We encourage the administration to support appropriate legislation to authorize the U.S. Treasury and the Federal Reserve to collaborate and work towards developing and implementing multiple pilots to explore and find appropriate solutions in key areas of concern to the American public, such as privacy, cyber resilience, financial inclusion and interoperability.
By developing a tokenized central bank digital currency, the United States can lead the world in this innovation sector for the next century. The time is now to establish pilot programs and lead in the exploration and advancement of this path-breaking technology. We welcome all who share these goals to join us and participate in our activities.