In an address at the Federal Reserve Bank of San Francisco on Thursday, U.S. Federal Reserve governor Lael Brainard detailed her agency's research plans on the potential development of a U.S. central bank digital currency (CBDC), or Digital Dollar.
Research projects under way include the Federal Reserve Bank of Boston's multi-year collaboration with the Massachusetts Institute of Technology to build and test a hypothetical digital currency oriented to central bank uses, with its codebase to be published as open source software.
Brainard said such research aims to understand digital currency systems' safety and efficiency, and to provide hands-on experience to understand the technologies available for central bank money.
The U.S. also is involved with the CBDC coalition of central banks on insights gained, and is jointly conducting experiments, to understand the threats to cybersecurity, counterfeiting and fraud, and anti-money laundering.
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