In its New York subsidiary, the U.S. Federal Reserve (Fed) completed the first test of Project Cedar, the initiative testing a central bank digital currency (CBDC). The New York Innovation Center (NYIC) carried out this first phase and highlighted the potential for digital assets and blockchain technology to improve legacy payment rails.
According to a report published by the NYIC, an entity created to research this CBDC, or “Digital Dollar,” is developing a “technical framework for a theoretical” implementation of this digital asset. Created in partnership with the Bank for International Settlements Innovation Hub (BISIH), the research center focused on a wholesale application of the CBDC.
The NYIC classified this first test phase as successful, per the report. The test was live for a 12-week period and leveraged blockchain technology to settle a transaction on a simulated FX market. This…
