Big U.S. banks and the Fed are working on a CBDC

The CBDC plan is launching in the U.S. with a 'proof of concept'.

The CBDC plan will launch in the U.S. with a 'proof of concept'. The first step is to bring in big clients and commercial banks.

Several large investment banks and lenders have collaborated with the U.S. Federal Reserve on the digital dollar. This comes from a statement from the central bank. They are working on a so-called 'proof of concept' for a soon-to-be-developed central bank digital currency, or CBDC.

Various organizations helping in the testing phase

The project will test a version of the 'Regulated Liability Network design' that operates exclusively in U.S. dollars. It aims to test the feasibility of an interoperable network with digital money from central banks and commercial banks. In the 12-week testing phase, they will work with various private-sector organizations. Mastercard, Wells Fargo, HSBC, and Citigroup are already in talks as partners. A CBDC testing phase recently began in Australia as well.