Ripple to Participate in the Digital Dollar Project’s CBDC Sandbox Program – The Digital Dollar Project (DDP), a nonprofit leading discussions about the proposed digital version of the U.S. dollar, recently announced the beginning of the “technical Sandbox Program to jumpstart further exploration of technical implementations” of the central bank digital currency (CBDC). The DDP stated that the program’s launch is scheduled for October, “with the inaugural cohort focused on cross-border payments.”
Four organizations, Ripple, Digital Asset, EMTECH, and Knox Networks, will support the DDP, according to a statement. The announcement also said that participants would get the chance to examine current technologies in the real world and research how it can affect business operations and plans. Additionally, participants will execute test runs to identify potential use cases.
People Also Read: Georgia to Update Crypto Regulations to Incorporate EU Rules
Jennifer Lassiter, an executive director at DDP, outlined the reasons behind her organization’s introduction of the sandbox program:
“The launch of our Technical Sandbox Program marks the next step in our effort to convene the private and public sectors in the exploration of a central bank digital currency in the U.S. We understand how important it is to include a diverse set of views and expertise as we look to answer key questions about how the technology could work, the problems we hope to solve, and the ultimate business and individual outcomes we want to achieve.”
According to Lassiter, the partnership between the organization and the commercial sector not only demonstrates the value of cooperation but also paves the way “for robust pilots that improve the outcomes and usage of CBDCs.”
Each cohort will have two phases, an education phase and a pilot phase, according to the statement. The initial phase’s main goal will be to aid DDP partners and participants in gaining a practical and business grasp of the technology. A comparison of the variations in potential design options will be made during this phase.
People Also Read: L2 Scaling Solution Arbitrum Deploys Nitro Rollup Stack Migration
The non-profit group stated that during the pilot phase, testing will be done to “identify and test specific CBDC use-case hypotheses.” The information from these findings will be utilized to educate both the public and private sectors “on how advanced technical solutions can generate corporate value in a transformative way.”